ROLE OF LAND TAX IN LOCAL POLICY

Land tax has always been an economical instrument for land managers. Nowadays, in the time of restructuring of agriculture and forestry the tax causes difficulties to the managers and users of agricultural and forest land as it does not fulfill its historical function. Stagnant market of agricultural products due to overproduction and low sales of green timber together with serious damages caused by climate changes bring on significant issues to the land managers mainly by decreasing their profit. In the Central European regions, the municipalities are beneficiaries of the land tax. Under the condition of economic recession the municipalities use the land tax as a source of income rather than as a motivation tool for land managers in order to encourage them to manage the land according to the environmental policy and based on the knowledge about ecosystems in the regions. The article offers suggestions for changes in land taxation within the municipal policy which are based on their influence on agricultural and forest land usage according to the local conditions.