| Abstract [eng] |
Effectiveness, Problematics and Possible Solutions of Real Estate Taxation This Master’s thesis presents a comprehensive analysis of Real Estate Taxation in Lithuania, determines the efficiency and problematics of property taxes and evaluates current ideas of their development. The work is divided into three parts. The first part of the work focuses on general characteristics and peculiarities of property taxes, examines its origins in Lithuania and determines the overall role of such taxes in the current tax system. It was set that property taxes belong to the category of direct taxes and that the uniqueness of the real estate tax object is the main feature which distinguish them from the other taxes. It was estimated that the role of property taxes and generally direct taxes in the national budget of Lithuania is rather low compared to statistics of foreign countries. The second part of the thesis analyses how real estate is taxed in different parts of the world and in Lithuania. Not only recurrent taxes on the use or ownership of property were analyzed but also non-recurrent taxes on transfer of the property. It was determined, that property taxes are considered to be a major source of revenue for local governments and are commonly used throughout the world. Each country sets its own rules for what property is taxable, therefore real estate is taxed quite differently. In Lithuania, like in many other countries, property taxes are calculated on the basis of the taxable value of immovable property, which is estimated by the mass valuation method or in some cases individually set by the property appraiser. The final part of the thesis provides a general assessment of property taxes, highlighting their advantages and disadvantages. The key factors influencing the effectiveness of real estate taxes are analyzed and the current and already implemented ideas related to modification of property taxes are evaluated. It was estimated, that one of the crucial things which reduces the revenue performance of property taxes can be associated with the big range of tax exemptions, due to which a lot of property owners do not have to pay property taxes. |
