Summary:
The Law on Property Taxes has been substantially amended in June 2007. These amendments have not only introduced some specific new articles of interest for the citizens and businesses, but have also introduced changes which will have a strong impact to revenues, and more generally financial position of local municipalities. There is some concern that financial position of Serbian municipalities may deteriorate.
This study deals with the following issues:
- what was the system of taxation of transfer of absolute rights in Serbia prior to June 2007
- what are the changes in the taxation system implemented in June 2007
- what are the problems which may arise at the local level
- quantification of the impact to local finances in total and in selected municipalities
- what are the possible solutions for these problems
