The property tax constitutes a fiscal-cadastral mechanism for the regulation of real estate utilisation, transactions, and market operations

Abstract

The national real estate tax (excluding land plots) is a fiscal and cadastral instrument of the state that combines revenue mobilisation functions with spatial and informational monitoring of real estate assets, and critically important in a free-market economy ensures their effective governance.

The aim of the study is to analyse the national property tax on immovable assets other than land, to examine its key advantages and major drawbacks since its implementation, and to outline the main steps for improving the procedures of its assessment and collection.

The research methodology includes an analysis of the positive outcomes and limitations of taxing real estate other than land in Ukraine, and the development of strategic directions for enhancing the property taxation mechanism and strengthening its public acceptance. The study employs methods of analysis and synthesis, comparison, and the tabular and graphical generalisation of findings.

The results of the study indicate that the main advantages of taxing non-land real estate in Ukraine include: the formation of local budget revenues at the location of real estate assets; incentivising owners to use their property more efficiently; the relative fairness of the tax; and the alignment of Ukraine’s tax system with European Union practices.

However, the drawbacks of the Ukrainian property tax include: the absence of a unified approach to real estate tax accounting; the potential of property taxation to contribute to increased social tension; the low efficiency of tax collection; and the lack of correlation between the tax amount and the market value of taxable property.

Conclusions. Improving the national property tax system requires: the transition to a system of mass valuation of real estate for taxation purposes; the comprehensive inclusion of all immovable property in inventory and cadastral records; the development and implementation of well-grounded tax benefits; refinement of property tax legislation; and the enhancement of taxpayers’ awareness and compliance.