Changes in Local Tax Systems at Local Self-government Level after 1989 in the Slovak Republic

Local taxes are, on the one hand, a source of financial resources for municipalities that they can use to finance their activities, on the other hand, a tool to make the territory more attractive to citizens but also to businesses. It follows that tax policy is an important part of the financial policy of cities and municipalities. The aim of the paper is to evaluate changes in the local tax system after 1989 in the local self-government in the Slovak Republic. The basis for the analysis was cumulative data for municipalities in the Slovak Republic reported by the Ministry of Finance of the Slovak Republic. The results of the analysis showed that the system of local taxes has undergone a significant change since the establishment of self-government. Of the original 12 fees, municipalities currently have 8 local taxes and one fee. The system has not changed in setting local tax rates only, but local taxes have become facultative, which in practice means that the municipality may or may not introduce them. The only mandatory fee is the fee for solid municipal waste and minor construction waste. Overall, local taxes account for an average 10 % of tax incomes of municipalities, and almost 15 % of tax incomes are incomes from the real estate tax. Although incomes from local taxes are the incomes of municipalities, their share of current incomes is 5 % on average.