Abstract:

Purpose. The article is devoted to the study of the structure of tax revenues of local budgets as an instrument of socio-economic development, analysis of the provision of local budgets by their own sources of income, revealing and substantiating directions for increasing the financial capacity of territorial communities. Methodology. Recommended by the Committee of Ministers to member states indicators of financial autonomy of local authorities are calculated and analysed for Ukraine in comparison with some European countries. A retrospective analysis of revenues of local budgets in Ukraine and the world in 2013-2017 was conducted. The tax base for property different from the land plot in 15 regions of Ukraine in 2013-2017 is investigated. Results. The significant predominance of transfers over tax revenues in the structure of local budget revenues was revealed. It is substantiated that the growth of own tax revenues of local budgets is directly related to the increase in the volume of income taxes on the property. It is proved that one of the most powerful instruments of the socioeconomic development of regions is projects taking into account the growth of taxes. It was revealed that the unwillingness to massive use of the latest financial instruments of economic development does not contribute to the dissemination of positive global experience in the development of regional infrastructure and expansion of the tax base. In Ukraine, the tax base of property tax is not related to the value of the property but depends on its size and area, which significantly differentiates the approach in other countries of the world. In view of this, local authorities, while ensuring the development of local infrastructure, should be interested in creating a new housing stock, timely putting it into operation, having in its structure a certain share of dwellings with large areas (which will increase the tax base) and business property. Practical implications. Potential property tax can be enhanced through the use of the method of tax increment financing that will enable finance local infrastructure by future revenues from this tax. Value/originality. According to the fact that Ukraine has no clear relationship between the level of development of local infrastructure and property tax revenues, but mainly evident dependence on the quantity and quality of housing and business development, job creation in the territory, it is advisable (during the preparation of institutional environment to attract financial and legal instruments for territorial development), methodologically we feel being right to satisfy not only gains tax revenues and property tax revenues and increased tax revenues per natural persons (due to the increase in the number of jobs) and a single tax (due to an increase in entrepreneurial activity in the region). The further use of this method of financing infrastructure projects and the possibility of its impact on regional tax base in Ukraine will require the development of guidance and methodological framework for the implementation of this method, including mechanisms for providing and transferring funds, method of calculation of future tax revenue guarantees for such projects to all interested stakeholders, Treasury services for such projects, etc.

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