Regularities of Development of the Property Taxation System in Ukraine in the Context of Increasing the Financial Capacity of Territorial Communities

The article is aimed at determining the regularities of use of the budget potential of the united territorial communities (UTOs) based on the income from the collection of property taxes. The author’s own scientific approach is developed to analyze the efficiency of use of the budget potential of territorial communities based on the income from property taxes. The main problem of collecting property taxes in Ukraine is substantiated, which is the low share of income from collection of these taxes. However, in today’s conditions it rises especially acutely, which is connected with the strengthening of the financial capacity of local government in the conditions of decentralization processes in our country. It is determined that the level of efficiency in the use of the budget potential of territorial communities based on property taxes is generally quite low. The author allocates the main problems in the context of property tax collection: inefficient definition of tax rates and tax-exempt persons; differences in the application of the tax in different territories; non-accounting of the financial situation of property owners when taxing. It is determined that for the real estate tax, which is different from the land tax, as well as for land fees, there is an intrinsic problem of the efficiency of setting tax rates by local governments, on which the volume of tax revenues to the local budget, the number of taxpayers and the efficiency of the tax in general depend. Existence of different approaches to setting a real estate tax in the UTO with different income levels per person is proved: lack of interest of the high-income UTOs in increasing the proceeds of the real estate tax is also leading to the local government bodies’ leveling of the possibility to efficiently set taxation rules and increase the tax revenues. Increased efficiency in the use of the budget potential of territorial communities based on property taxes is identified. This demonstrates the understanding of the local government bodies of the benefits of using these taxes to improve the financial capacity of territorial communities.