Paper/Speech Details of Conference Program for the 26th NISPAcee Annual Conference Program Overview V. Public Finance and Management Author(s) Mihaly Lados HUN-REN Centre for Economic and Regional Studies Gyor Hungary Szabo Istvan, Title Local Taxation and Local Economic Development in Hungarian big Cities File Paper files are available only for conference participants, please login first. Presenter Mihaly Lados Abstract The paper would join Track 2: Burning Issue in Local Government Finance in a ‘named’ Country of V. Working Group on Public Finance and Public Financial Management. A key indicator to measure fiscal autonomy of local governments (LGs) is the rate of own revenues within the total revenues. The most significant own revenues are local taxes (LT). The revenue generation capacity of LGs are vary across the country by regions and by size of local governments. Beside Budapest, capital of Hungary the 23 cities with county right generate one third of local taxes. There is an ongoing research project focusing on these Hungarian big cities. One of the topic the research is to find the relation between local based municipal revenues and local economic development. The analysis has the following structure: 1. Local taxes and local taxation (23 cities with county right) • tax structure (1990-2017): • share of local taxes in local budget (1990-2017): potential revenue for local economic development • analysis of local tax policies (1990-2017, focusing on the period of 2006-2017): models, attitudes (tax rate, exemptions set by the municipality) • analysis of external effects: accession to the EU, fiscal and economic crisis, new act on Local Governments 2. Local Economic Development • Direct economic develőpment: institutions, infrastructure etc. – 8 big cities above 100,000 inhabitants • Role municipal property management in local economic development: - Definition of municipal property (narrow, wide) - In what forms ? (Non-budgetary organisations.) - New models in Hungarian big cities. (23 cities with county right) We analyse only organisations owned by local governments at 100%. What is the division of labour between local government and companies owned by local government related to local economic develpopment. Which form is more effective? (municipal holdings, municipal owned industrial park, other municipal owned intermedier organisations like regional airport, regional harbour etc.)
