Municipal Approaches to Immovable Property Taxation in the Czech Republic

Abstract In the Czech Republic, as in most EU countries, property tax constitutes a traditional and stable source of municipal revenue. The administration and collection of immovable property tax in the Czech Republic is the responsibility of the tax authorities, while municipalities can influence the amount of revenue generated mainly through coefficients established by generally binding decrees. The primary aim of this research is to investigate how municipalities increase immovable property tax revenues through the use of coefficients, including correction, municipal, and local coefficients. This research is based on primary data gathered in 2024 and 2025 via a questionnaire survey conducted through personal interviews, emails, and phone calls. Recent legislative changes have extended the competence of municipalities to implement local coefficients. The findings of the study show that, although most municipalities across various size categories consider these options sufficient, the complexities of the legislative framework may pose challenges to the effective application of the local coefficient. Some municipalities offer financial benefits to residents in connection with the introduction of the local coefficient, often in the form of reductions or complete waivers of abolished municipal waste fees.