Features of legal regulation of local taxes and fees administration and their place in the structure of local budget revenues

Abstract

Problem setting. An important element of the economic basis for effective resolution of tasks and functions by local self-government bodies is the income of local budgets. According to information from the official state web portal of open data in the field of public finances - Open budget, there are 1,952 local budgets in Ukraine, the revenue part of which as of October 1, 2024 is formed by 64.23% due to tax revenues in the amount of UAH 316,376,414,760.41. , including, but not exclusively, at the expense of local taxes in the form of property tax in the amount of UAH 47,473,912,844.99. or 15.1% and a single tax in the amount of UAH 62,763,592,313.79. or 19.8% of tax revenues credited to the relevant local budgets

Аnalysis of recent researches and publications. Despite such insignificant indicators in the structure of tax revenues, local taxes and fees are of sufficient importance for the formation of the revenue part of local budgets, since they are, although not the main, but important source of revenues.

Purpose of research is to determine the current state of the legislation regulating the administration of taxes and fees in general, and local taxes and fees, in particular, as well as to clarify the problematic issues that arise in this and prospective projects for their regulation and improvement of the legislation.

 The scientific novelty of the research lies in the fact that the analysis of problematic issues that arise during the administration of local taxes and fees is done in a new way. On the basis of which, conclusions were made regarding the need for legislative regulation of the relevant gaps.

Аrticle’s main body. This article is devoted to the study of theoretical and practical aspects of the legal regulation of the administration of local taxes and fees and the determination of their place in the structure of local budget revenues.

The norms of the current tax legislation regulating the administration of taxes and fees as a set of relevant decisions and procedures of control bodies and actions of their officials, as well as scientific research on these issues, have been analyzed. Particular attention is paid to the features of the legal regulation of the administration of local taxes and fees, as well as the problematic issues that arise in their practical application. The draft Law of Ukraine "On Amendments to the Tax Code of Ukraine and Other Legislative Acts on Improving the Administration of Property Tax", which provides for the gradual transfer of powers to administer property tax to local governments, has also been analyzed.

Based on the statistical data of public financial authorities, it is substantiated that local taxes and fees have a significant impact on the formation of the revenue side of local budgets, as they are, although not the main, but an important source of revenue. It is noted that today, local governments, which are most interested in increasing revenues to local budgets at the expense of local taxes and fees, do not have legal opportunities to influence the improvement of their administration processes, since the tax legislation assigns the function of administration, including local taxes and fees, to the powers of tax authorities. At the same time, studies on the ability of local governments to ensure the full range of administrative procedures indicate the urgent need for legislative changes to grant additional powers to local governments in the administration of local taxes and fees.

The judicial practice that has developed on problematic issues of the application of tax legislation regarding decisions of local councils on the establishment of rates and the procedure for calculating local taxes and fees has also been analyzed.

Conclusions and prospects for the development. Proper administration of local taxes and fees is a guarantee of timely and full fulfillment by taxpayers of their constitutional duty to pay taxes to fill local budgets. The imperfection of the current legislation in this area requires legislative regulation in order to further develop the financial independence and capacity of local self-government.

Currently, we have legislative initiatives, in particular, the draft Law of Ukraine "On Amending the Tax Code of Ukraine and other legislative acts on improving the administration of property tax" (No. 11067 dated 08.03.2024), which is relevant and promising in the context of reforming the system of administration of local taxes and fees. obviously, their implementation will contribute to the achievement of several important goals in the field of budget and tax regulation, strengthening the financial independence of communities and the efficiency of the administration of tax payments. Despite possible challenges, the implementation of the proposed changes will contribute to the filling of local budgets, more efficient use of resources and further strengthening of local self-government in Ukraine.

Based on the conducted research, it is concluded that proper administration of local taxes and fees is a guarantee of proper fulfillment by taxpayers of a particular territory of their constitutional duty to pay taxes to fill local budgets in order to further develop the financial independence and capacity of local self-government.