INSTITUTE OF LOCAL TAXES AND ITS STATUS IN FINANCE SYSTEM OF CONTEMPORARY DEMOCRATIC STATES

Summary
The aim of the article is to assess the situation in Lithuania and other countries of the European Union in the sphere of local taxes. The aim is to investigate the theoretical bases of local taxes, to define the Lithuanian situation in the sphere of local taxes, in comparison with other countries. The methods of research are logical and comparative analysis of the scientific literature and the legal certificates, the analysis and generalization of the statistical data. General principles of taxes distribution between state and local authority levels are discussed. The experience of modern democratic states is considered. Today situation in the sphere of local taxes in Lithuania is analyzed. The situation in the capital of Lithuanian municipality is compared with situation in capitals of other countries of the European Union. It makes the conclusion that the local taxes institute in Lithuania is developed insufficiently. It is proposed the means which will enable us to develop local taxes institute until European level, i.e. to legalize of the local taxes by the corresponding law, to legalize the real estate tax as the main local tax developing its base and opportunities of the self-government to install its tariff in more greater limits, the part of the income tax of the inhabitants, attributed to the self-government to legalize as a local tax, empowering an opportunity to install its tariffs within statutory limits the new local taxes, for example, the taxes to property of the legal persons and the magnificent property of the physical persons must be legalized.

Davulis_Gediminas.pdf