Factors Influencing Revenues of Shared Tax for Municipalities

The paper focuses on the issue of the impact of budgetary allocation of taxes on the management of municipalities in the Czech Republic. The budgetary allocation of taxes for municipalities in the Czech Republic is based on the sharing of earned taxes between the state budget, regional budgets and municipal budgets. Tax sharing for municipalities is carried out on the basis of criteria of population, pupils and area of municipalities. Actual tax revenues for municipalities are affected by the rate of tax sharing, economic growth reflected in the size of taxes earned and other factors that are reflected in tax sharing revenues. The aim of the paper is to evaluate the effects of budgetary allocation of taxes on the economy of municipalities and to assess the main influences that were reflected in the size of revenues from shared taxes in municipal budgets in the period 2014-2020 and especially in 2020.