Nekilnojamojo turto apmokestinimo sumoderninimas Lietuvoje

Abstract

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.
Hence, the following steps can be implemented to make property taxation more consistent and modern in Lithuania:
– All the taxation issues of real estate which is registered in the Real Property Registry of the Republic of Lithuania, should be set forth in a single tax law.
– Property tax base should be expanded. It is sensible to tax residential property as well. However, a minimal not-taxable exemption might be applied in respect to some residential property which is inscribed on the Property Registry of the Republic of Lithuania (excepting land) and which is declared by a taxpayer as a major dwelling place.
– Local authorities should be entitled to determine the particular property tax rates taking into consideration minimal and maximal property tax rates approved by the central government in the law. Moreover, municipalities should be also entitled to adjust property tax base according to the peculiarities of particular location.
– The taxable value of the levied property should be determined taking into consideration its value (ad valorem). The State Enterprise Centre of Registers should be assigned to classify different objects of real estate and approve their open-market value. The Territorial States Tax Inspectorates should be assigned to inform taxpayers on it as well as send respective tax bills. The tax collection issues should be administered by the Territorial State Tax Inspectorates.
– Local authorities together with the agencies of central government (e. g. the Ministry of Finance, the State Tax Inspectorate) should pay more attention to the pedagogic work in order to provide inhabitants with more information about property tax and its advantages.
– Local authorities should organize local services more efficiently. Local residents should substantially feel benefits received through taxation of real estate. Furthermore, local population should regularly be informed on the expenditure of local authorities and their strategy establishing the most effective property tax rates as well as on the other legal requirements of property tax.