The paper deals with real estate taxation in the Czech Republic and Slovakia. Different approaches to the application of the tax are discussed (especially the determination of tax rates and the method of tax collection). After a critical literature search of relevant sources, the research was carried out via survey. 1352 questionnaires were included into processing (839 citizens of Czech Republic and 513 citizens of Slovakia). Primary research also assesses how taxpayers of real estate taxes perceive this local tax in terms of its amount and fairness. Justification for the tax in connection with investing the revenue to improve the life of citizens in the municipality was also surveyed. The survey data were evaluated using descriptive statistics and Kruskal-Wallis non-parametric test in SPSS Statistics. Based on the empirical survey, the median value of the real estate tax was lower in the Czech Republic than in Slovakia, yet was perceived as higher by the majority of Czech respondents. The perception of taxation fairness varied. Respondents in the Czech Republic, for example, were less likely to report improvements in the municipality in relation to the revenues from this tax. On the other hand, almost half of the respondents from Slovakia reported improvements. Most of these respondents in both countries knew how the collected funds were used and which concrete projects were implemented in the municipality.
Friday, 29 March 2019: 9:50 AM
In most OECD countries, the real estate tax is a local tax. The differences between the countries are in who collects the tax and the status of municipalities in terms of affecting the amount of the tax. Real estate tax is collected in the Czech Republic by tax offices. Tax rates are set by the state. Municipalities can influence tax revenue mainly through coefficients. The real estate tax in Slovakia is collected by the municipality in the territory where the real estate is located. The municipality also has the power to set the tax rate. The central authority sets only the maximum amount by law. Both the Czech Republic and Slovakia are among the countries with low real estate taxation, for which both states are criticized by the Organization for Economic Cooperation & Development (OECD).