Property Tax Reform

Property Tax Reform

Project info 

The local governments will improve dialogue with citizens on the use of property tax revenue. In close cooperation with line ministries and the Standing Conference of Towns and Municipalities, the Program will facilitate policy debates on property taxation and other related local public finance management issues sensitive to the development needs of Serbian local self-governments.
The Program will support 40 local self-governments in Serbia to increase collection of property tax, i.e. local own source revenues relevant to modernise public services to citizens and the private sector. The local governments will improve dialogue with citizens on the use of property tax revenue. In close cooperation with line ministries and the Standing Conference of Towns and Municipalities, the Program will facilitate policy debates on property taxation and other related local public finance management issues sensitive to the development needs of Serbian local self-governments. The Program aims to improve living conditions, services and governance for ca. 2.500.000 citizens in Serbia. Good governance will be applied transversally to all activities to increase awareness of decision-makers and facilitate practical government measures containing good governance principles. A specific focus will be given to foster accountability relations between citizens (tax payers) and the local self-governments (service providers). Supported local governments will have the opportunity to participate in performance based grant scheme of CHF 1.000.000. Those local governments that improve their property tax collection most effectively will receive support from the grant scheme to implement municipal development projects according to citizen’s needs.
The current program phase (Property Tax Reform) is a scale up of the most successful component of the SDC supported Municipal Economic Development in East Serbia Program, implemented from 2013-2017.

Value 
5,526,155€
Duration 
06/2017 to 06/2019

Donor

Sector

IMG Role

Implementing partner

Objectives 

1. The program will support local governments to increase quality of services and capacity to effectively apply the Law on Property Tax by fostering downward accountability of local governments.
2. Stimulation of local government accountability towards its citizens, rule of law, horizontal and vertical government cooperation through implementation of competitive grants.
3. Embedding effective governance frameworks and enhancing participation of the citizens, civil and private sector representatives in the development of the public spending priorities of local governments.
4. Supporting joint, accountable and inclusive actions in property taxation and local public finances by fostering inter-governmental and inter-municipal cooperation and networking.