Modelling the System of Farmland Taxation

EasyChair Preprint no. 1444

Abstract

The rapid development of economic systems leads to the modeling and as a result of the involvement of modern information technologies. The land tax system is no exception, as land is a special real property and is included in the list of items of taxation in each country. In international practices, there are three basic concepts of the taxation system, based on the land as a subject property: the land as a separate item of taxation; the land is taxed with the real estate located on it; the land is subject to multiple taxes. The most widespread system is the land tax along with the real estate located on it.

Ukraine has introduced a model of a combined system of land taxation. Land taxpayers are the owners of the land, land shares (land units) and they are land users. The tax base is the regulatory monetary valuation of land plots and their area. Local self-government bodies set rates of the land tax and tax preferences. Establishing discriminatory rates of the land tax, the category of land, functional use, composition of farmlands, the qualitative status of the land, etc. are taken into account. Particularly relevant is the issue of modeling of the taxation of agricultural land – farmlands, which occupy the largest share of the land fund of the country, and the priority of their use for the intended purpose.

Models of the general system of land taxation in Ukraine and farmland taxation have been developed. Concerning it, the classification of farmland taxation has been proposed and the variants of establishing diversified rates of the land tax have been considered. They consider the qualitative state of specific land plots and the level of implementation of measures to improve their quality using the Thomas Saati Hierarchy Analysis Method. The introduction of a diversified taxation model will encourage taxpayers to allocate their funds for activities aimed at improving, rationalizing and protecting agricultural land.

Keyphrases: Farmland taxation, Land tax, System of taxation

@Booklet{EasyChair:1444,
  author = {Iryna Koshkalda and Anastasiy Suska and Tetiana Anopriienko and Alona Riasnianska},
  title = {Modelling the System of Farmland Taxation},
  howpublished = {EasyChair Preprint no. 1444},

  year = {EasyChair, 2019}}