Local coefficient for the property tax

The thesis analyses the reasons that lead municipalities to introduce local coefficients on their territory and the methods, arguments and scope of applying coefficients. Furthermore, the thesis examines the influence of geographical location of municipalities within the Czech Republic on the introduction of the local coefficient. In the first chapter of the thesis, the taxation of immovable property is introduced and the local coefficient is presented. The second chapter is devoted to the powers of municipalities while the third chapter summarises the development of the legislation. The fourth chapter practically examines the use of the local coefficient, while the fifth chapter evaluates the findings, puts them in context with the current legislation and describes the most common reasons and ways of introducing the local coefficient. The analysis shows that municipalities have different reasons for introducing local coefficients. The most common reasons are to compensate for negative externalities, to enhance legal certainty or to reduce the impact of the legislation on the population. The introduction of a coefficient also depends on the location of the municipality. In more industrialised regions, the use of local coefficients is more frequent than in other regions.