Summary:
Municipalities in Serbia are facing significant challenges in terms of development and implementation of urban land policies, as well as in terms of maintenance and development of communal infrastructure. The key instrument of land policy is the land development fee, which is generally levied for the provision of both local public goods (green spaces, water drainage etc.) and private goods (water, sewage, gas etc.) The current system results in non-transparent, inefficient and unfair outcomes since the level of the fee usually has no connection with the real costs of land development. Therefore, the reform the current system is needed, probably leading to the introduction of some form of impact fee, which are generally used in Europe and USA for this purpose.
The study covers the following topics:
- The current situation regarding construction land development in Serbia
- Need to Reform the Construction land Development Fee
- Current situation in the world and the region
- Principles of the future system
- Possible options for reforming the land development fee
- Proposal for the reform of the construction land development fee
