Suchergebnisse

This article deals with modernization of property taxation in Lithuania. At the beginning of the article the author analyses the concept of property tax. Thus, different definitions of property tax that are employed in Lithuanian and foreign legislation are presented. International classifications of taxable income elaborated by the Organization for Economic Co-operation and Development as well as the International Monetary Fund are taken as a baseline for further interpretation of property taxes. Accordingly, the property tax is defined as a recurrent tax on land and other immovable property. The following chapters of the article are devoted for the most significant legislative developments that were performed amending legal regulation of Land Tax as well as Real Estate Tax paid by Enterprisers and Organizations in Lithuania from 1995 until 2006. Moreover, there was a special Tax on the Leased State Land for Commercial or Amateur Fishery until 2003. The tax was abolished, as leased land under free market conditions should be used on the relevant lease agreement rather than a special tax. At present, this state land is used by private persons due to the agreed fee. Further the author pays much attention the freshest legislative developments concerning taxation of property in Lithuania in this article as well. For instance, there was a special draft of Land Tax that was prepared in 2003, however, failed to be adopted. Furthermore, the advantages and drawbacks of the new Law on Property Tax that was enacted on 7 June 2005 are discussed. At the end of the work the author presents the own model of property taxation.

This article deals with modernization of property taxation in Lithuania. At the beginning of the article the author analyses the concept of property tax. Thus, different definitions of property tax that are employed in Lithuanian and foreign legislation are presented. International classifications of taxable income elaborated by the Organization for Economic Co-operation and Development as well as the International Monetary Fund are taken as a baseline for further interpretation of property taxes. Accordingly, the property tax is defined as a recurrent tax on land and other immovable property. The following chapters of the article are devoted for the most significant legislative developments that were performed amending legal regulation of Land Tax as well as Real Estate Tax paid by Enterprisers and Organizations in Lithuania from 1995 until 2006. Moreover, there was a special Tax on the Leased State Land for Commercial or Amateur Fishery until 2003. The tax was abolished, as leased land under free market conditions should be used on the relevant lease agreement rather than a special tax. At present, this state land is used by private persons due to the agreed fee. Further the author pays much attention the freshest legislative developments concerning taxation of property in Lithuania in this article as well. For instance, there was a special draft of Land Tax that was prepared in 2003, however, failed to be adopted. Furthermore, the advantages and drawbacks of the new Law on Property Tax that was enacted on 7 June 2005 are discussed. At the end of the work the author presents the own model of property taxation.

This article deals with the property tax reform that was carried out in Lithuania as well as in other Eastern and Central European countries since the 1990s. Since the beginning of the 1990s most countries of this region have reshaped their national systems from command to free market economy, created a stabile market and some of them joined the European Union. Most of the new EU Member States from Eastern and Central Europe have taken much effort to make their national taxation more consistent and attractive for investors. In particular, these countries have already diminished or consider diminishing the rates of corporate, income and some other taxes. On the other hand, the decreased revenue should be collected from other sources. In this context, property taxes are supposed to be a proper alternative to reimburse the loss of revenue. Furthermore, property taxes are also appreciated due to their nonfiscal functions (e.g.role of property taxation for sustainable urbanisation, effective use of land, land improvement). Major economic and legal reforms in Eastern and Central European countries since the 1990s as well as their implication to the reform of property taxation are observed in this article. The author elucidates privatization, restitution (reestablishment of property rights), reforms of national tax systems, local governance, etc. It is concluded that not all the anticipated reforms have been carried out as quickly as they were planned. The protracted reform of modernisation of property taxes was partly stipulated by undeveloped real estate markets, lack of relevant data, delayed reestablishment of property rights as well as some other objective factors. On the other hand, the politicians were afraid to loose political support if they increase a tax burden. Moreover, lack of consistent national strategies on local taxes and local governance has contributed to successful finalization of property taxation.

This article deals with the property tax reform that was carried out in Lithuania as well as in other Eastern and Central European countries since the 1990s. Since the beginning of the 1990s most countries of this region have reshaped their national systems from command to free market economy, created a stabile market and some of them joined the European Union. Most of the new EU Member States from Eastern and Central Europe have taken much effort to make their national taxation more consistent and attractive for investors. In particular, these countries have already diminished or consider diminishing the rates of corporate, income and some other taxes. On the other hand, the decreased revenue should be collected from other sources. In this context, property taxes are supposed to be a proper alternative to reimburse the loss of revenue. Furthermore, property taxes are also appreciated due to their nonfiscal functions (e.g.role of property taxation for sustainable urbanisation, effective use of land, land improvement). Major economic and legal reforms in Eastern and Central European countries since the 1990s as well as their implication to the reform of property taxation are observed in this article. The author elucidates privatization, restitution (reestablishment of property rights), reforms of national tax systems, local governance, etc. It is concluded that not all the anticipated reforms have been carried out as quickly as they were planned. The protracted reform of modernisation of property taxes was partly stipulated by undeveloped real estate markets, lack of relevant data, delayed reestablishment of property rights as well as some other objective factors. On the other hand, the politicians were afraid to loose political support if they increase a tax burden. Moreover, lack of consistent national strategies on local taxes and local governance has contributed to successful finalization of property taxation.