PROPERTY TAX AS THE BASIS OF LOCAL BUDGETS FORMATION: DOMESTIC PRACTICE AND FOREIGN EXPERIENCE

Nowadays the necessity of studying the foreign experience in property taxation, including the experience of the Federal Republic of Germany (hereinafter Germany), is due to the need of increasing the cash income of municipal formations as well as of enhancing the effectiveness and potential of this tax as a whole. In the works of Ukrainian scientists an analysis of the problems existing in the property taxation system in Ukraine was carried out. In particular, the issues of regulating the real estate tax in Ukraine and improving the taxation system as the basis for local budgets formation are studied by I. V. Gorsky, A. V. Medvedeva, T. G. Lebedinskaya, E. A. Yudin. The problems of property taxation in Ukraine also examined from the point of view of foreign experience and prospects for improvement by Tokar V.V. The author in this article analyzes the actual problems of the formation of municipal budgets at the expense of property tax from the point of view of domestic practice and foreign experience, in part of the experience of taxation of property in Germany. The conducted research showed that due to the use of a market approach to valuation of property as a tax base equal to the conditions of taxation for all subjects of tax relations, as well as an effective system for assessing the value of property that does not allow manipulation, excludes elements of corruption from this process, Germany, has significant achievements in regulating this group of taxes. It is concluded that the introduction of separate elements of the German system of taxation of property, which are considered in this article, into the practice of taxation in Ukraine can increase the overall efficiency of this tax, create conditions for reducing the level of corruption in local government bodies, and give this group of taxes a greater social orientation.