Tax expenditures w podatkach od nieruchomości jako instrument lokalnej polityki podatkowej w odpowiedzi na zmiany w opodatkowaniu dochodów osobistych

Purpose - Assessment of the willingness of municipalities to use the tax authority granted to them, in the scope of using local tax policy instruments in the field of real estate taxation, as a consequence of changes in personal income taxation. Research method - The fiscal effects of changes in tax law were assessed based on an economic analysis of the law. Descriptive statistics measures were used to analyse changes in revenues from taxation of personal income and the size of the loss of revenues due to tax expenditures in revenues from real estate taxation. A critical analysis of the literature on the subject was carried out. The empirical study covered all municipalities in Poland. The data was obtained from budget reports Rb-27S and SP-1 for 2019–2023. Results - The analysis of changes in the Personal Income Tax Act enables to determine that in the last two decades, what has had the most significant impact of tax law changes on municipalities' revenues was the introduction of the Polish Deal in 2022. It was found that in addition to changes in tax law in 2019–2023 the fiscal importance of municipalities’ shares in personal income tax revenues in 2019–2023 depended on the economic situation, particularly in revenues from taxation of personal income from business activities. Significant differences were found in the willingness to use tax expenditures within real estate taxation policy depending on the municipality type. In particular, the type of tax expenditures provided by cities with county rights was specific. Especially in the years 2020–2023, tax exemptions were more critical concerning reducing tax rates in real estate tax. Originality / value / implications / recommendations - An original approach to analysing municipalities’ decisions regarding real estate taxation policy was projected, assuming the impact on local tax policy of decisions of central authorities, independent of municipalities, regarding the taxation of personal income. The adopted assumptions allow for an In-depth analysis of the effects of central government tax policy by identifying the variances in the reactions of local government authorities in the field of real estate taxation.