Usage of Coefficients for Real Estate Tax in Regional Cities of the Czech Republic

The paper is focused on municipalities' possibility to use the real estate tax coefficients and increase their budget revenues. Municipal budgets should be balanced and expenditures covered by real expected revenues. Tax revenues represent the most significant part of the municipal budget, while local taxes support a partial autonomy of the municipality. On the basis of the council's decision, municipalities in the Czech Republic may adjust the coefficients amount and thus increase the real estate tax yield. Our paper is aimed to evaluate the use of this power in the regional cities of the Czech republic: Brno (BR), Ceske Budejovice (CB), Hradec Kralove (HK), Jihlava (JI), Karlovy Vary (KV), Liberec (LI), Olomouc (OL), Ostrava (OT), Pardubice (PU), Plzen (PL), Usti nad Labem (UL) and Zlin (ZL). The evaluation covers the period 2009 - 2018. Based on the analyses of the general binding regulations, governing these coefficients adjustments, the coefficients usage in the selected regional cities was compared. During the reviewed period, there occurred some legislative changes affecting the real estate taxes yields in the monitored regional cities. On account of the study performed, we have found that the coefficients usage in the regional cities is higher than in other municipalities.