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Influence of Criteria of Built-up Areas in the Village to the Total Share of Municipalities on Shared Taxes


  • Jiří Čermák

    () (Czech University of Life Sciences Prague)

  • Martin Gürtler

    () (Czech University of Life Sciences Prague)


There has become valid the limiting condition of 10 hectares per an inhabitant in the criterion of cadastral acreage of municipalities in the budgetary taxes. The limiting condition has been valid from the year 2013. The limiting condition was implemented to prevent groundless amount of incomes to a budget of some municipalities, especially border municipalities which municipalities get on the basis of its large cadastral area in relation to the cadastral area of the whole Czech Republic. The topic of the article is to compare of incomes of municipalities on the basis of the sole criterion – cadastral area with limiting condition 10 hectares per an inhabitant or built-up area in a municipality (m2). The goal is to find out if the new limiting condition will influence more to the decreasing of extreme values in redistribution in connection with compare criterion of built-up area in a municipality (m2). The criterion of built-up area is the equivalent to the limiting condition of 10 hectares which the Ministry of Finance of the Czech Republic applied in calculation of the share taxes due to mentioned facts. Final distribution of the financial means to the budget of the municipalities is shown in the graphical representation and there are observed incomes per inhabitant in 4 big cities – Prague, Brno, Ostrava and Plzeň and median values of all others municipalities. The results show that in comparison of the criterion of cadastral acreage of municipalities with limiting conditions and built-up area in a municipality (m2) the extreme values are decreasing if both criterions are used. But in the criterion of built-up area of municipality is the redistribution of means more homogeneity per one inhabitant. We can pronounce that if we use the criterion of re-built area of municipality the financial means are more redistributed in favour of bigger settlement unit while in the criterion of cadastral acreage of municipality it is more the opposite.

Suggested Citation

  • Jiří Čermák & Martin Gürtler, 2014. "Influence of Criteria of Built-up Areas in the Village to the Total Share of Municipalities on Shared Taxes," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 17(1), pages 43-59.
  • Handle: RePEc:boh:actaub:v:17:y:2014:i:1:p:43-59

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    References listed on IDEAS

    1. Jairo Hernando Pulecio Franco, 2007. "El federalismo fiscal en España," Contribuciones a la Economía, Grupo (Universidad de Málaga), issue 2007-02, February.
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    4. Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1, January.
    5. McLure, Charles E. Jr., 2001. "The Tax Assignment Problem: Ruminations on How Theory and Practice Depend on History," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(2), pages 339-364, June.
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    More about this item


    Budgetary Taxes; a Criterion of Cadastral Acreage of a Municipality; a Criterion of Built-up area of a Municipality; Incomes of Municipalities;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H40 - Public Economics - - Publicly Provided Goods - - - General


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