Tax and Income Tax on Buildings- Income Source for Local Budgets

Abstract

In this article, we propose the study of the place and role we play in the local budgets of Romania "Tax and income tax on buildings". In the first part of the paper I made a presentation of imposed tax and tax on buildings, placing a special emphasis on how to calculate this mandatory tax in the case of residential and non-residential buildings. The research continues with the quantitative analysis of the budget indicator "Income tax and tax on buildings" on the basis of the data available in the Statistical Yearbook of Romania and highlights the place occupied by such income within local public revenues in Romania. The analysis shows that the income tax and the tax on buildings occupy a very small share in the total local budget revenues (around 6%) which suggests that it is necessary to rethink the current building tax system that applies in our country.