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"The Reform of Urban Land Finances"

 CLDS, april 2006.

The «Reform of the Urban Land Finances» Round Table was held on July 27th 2006 at the premises of the Standing Conference of Towns and Municipalities, in order to discuss the findings of the recently finalized study «Reform of the Urban Land Finances». The participants at the cofnerence were representatives from many Serbian land directorates, representatives of local municipalities and the Government of Serbia.
 
 
   
   
   
   
               

Authors of the Study (Boris Begović, Boško Mijatović i Marko Paunović) presented the main findings:

  1. the existing land finance system is rather bad and unreformed since 2000;
  2. the source of most problems in this area is in the inadequate constitutional and legislative framework, which prevents private property of urban land and does not allow municipal property;
  3. system of fees which are used to finance urban land is completely inadewuate and obsolete.

Also, authors presented several specific suggestions, such as:

  1. implement comprehensive urban land privatization
  2. integrate land use fee and property taxes
  3. property tax base should be defined as market value of the property

In the continuation of the round table, the discussion was held regarding the future role or land directorates. The participants agree that the current system is bad, but there were certain arguments regarding the cause. Besides already mentioned conceptual problems, the participants stressed the undefined legal status of the land directorates, which are public companies, but at the same time, indirect budget users which have no independence from local authorities.

Authors presented their view that the future of land directorates, in the short run, is probably in participating in the urban land privatization process, but that on a longer run their integration into local government can be expected. Also, they presented their view that Directorates will, in the future, be authorized only to provide local public goods, while the provision of other goods shall be negotiated between the investor and local public utilities.

Bosko Mijatovic, one of the authors also presented the findings of another CLDS study – «Privatization of urban land», which is being prepared for Government of Serbia. Mr. Ralevic, Assistant Minister in the Ministry for Capital Invesments presented the plans of that ministry regarding reforms in this area.

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