The purpose of this paper is to give a recommendation to the municipalities what local tax/taxes sensu largo (a waste charge or an immovable property tax increased by a local coefficient) are to be collected to achieve expected and necessary incomes and limit the administrative costs.
To reach the aim, it was necessary to analyze the number of municipalities increasing the property tax by the local coefficient and abolishing the charge on communal waste to save money for the waste charges administration. The evidence of municipalities applying the local coefficient was used as a basis for the research. To get the information on charges on communal waste collected in these municipalities with the local coefficient within the past at least five taxable periods, the information from Monitor was used. If there was any such a significant change, then it was necessary to use the bylaws and to do thorough analysis of the reasons.
The hypothesis that a high number of municipalities in the Czech Republic are replacing the charge on communal waste with the local coefficient applicable for the immovable property tax was rejected. In the opinion of the author, the ideal approach is to have just one local tax – immovable property tax. This tax is administered by the state tax office and the revenue should cover the cost of waste management. Adopting only the property tax increased by the local coefficient, it is necessary to explain the benefits to the taxpayers, that is, locals and voters.
The research on the given topic was never done in the Czech Republic, as there is no evidence of local charges collected in individual municipalities.
The author would like to express my gratitude to Michal Plaček from the Faculty of Social Sciences, Charles University, Prague, Czech Republic, for exporting data from the Monitor and Victoria Drew for the language editing.
Radvan, M. (2019), "Municipal charges on communal waste: do they compete with the immovable property tax?", Journal of Financial Management of Property and Construction, Vol. 24 No. 2, pp. 148-165. https://doi.org/10.1108/JFMPC-02-2018-0007
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