Only a Theoretical Possibility of the Ad Valorem Property Tax System - the Regulation on Immovable Property Taxes in Hungary
Only a Theoretical Possibility of the Ad Valorem Property Tax System - the Regulation on Immovable Property Taxes in Hungary

Summary/Abstract: The immovable property taxes have a long tradition in the modern tax system, as well in the Hungarian regulation. They are now an important revenues of the Hungarian municipalities, but this taxation is now primarily an area-based system. First of all, the traditions of the property taxation and the current regulation on property taxes will be reviewed by the article. A tax system of a modern democracy which is based on the rule of law requires the high quality of the tax administration. Therefore in the second part of the article the quality of the Hungarian tax system and the quality of the local taxation will be reviewed. In the third part of the article the main problems and the failed reform attempts of the Hungarian property taxation and the barriers to the implementation of the ad valorem system will be reviewed. Finally, the main findings of the review will be summarized.

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