Conceptualization of the essence of local taxes: scientific discourse
DOI:
https://doi.org/10.26565/2786-4995-2026-3-05Keywords:
local taxation, local finances, local taxes and fees, territorial communities, tax revenues, local budgets, martial lawAbstract
The article examines the conceptual aspects of the functioning of local taxes through the lens of contemporary scholarly discourse.
Introduction. Developing financially viable territorial communities in Ukraine is impossible without them generating sufficient revenue from their own sources. Local taxes and fees play a key role in such revenue.
Problem statement. Despite the significant body of research dedicated to defining the essence of local taxes and identifying their role and functions in the development of territorial communities, contradictions persist within the conceptual and categorical framework of financial science regarding the nature of local taxation. This is primarily due to its dualistic nature: on the one hand, local taxes serve as a fiscal instrument for bolstering the revenue base of local budgets, while on the other, they act as a means to stimulate (or restrain) the investment activity of communities.
Unresolved aspects of the problem. The nature of local taxes remains insufficiently explored, given the multifaceted nature of the concept under study. The theoretical and methodological foundations for conceptualizing the essence of local taxes require further research, taking into account the latest challenges to the financial and economic stability of communities.
Purpose of the article. The aim of the study is to deepen the theoretical and methodological foundations regarding the nature of local taxes by systematizing scientific approaches in contemporary financial science and substantiating the author's perspective on their fundamental essence, taking into account the modern challenges facing the financial and economic development of territorial communities.
Presentation of the main material. The article analyzes and systematizes scientific approaches to conceptualizing the essence of the category "local taxes." An examination of the evolution of financial thought reveals the dual nature of local taxation. The quintessence of local taxes is substantiated through a matrix of four dominant aspects: fiscal, regulatory, social, and institutional-legal. The author presents a perspective on interpreting local taxation in both broad and narrow senses.
Conclusions. It has been demonstrated that local taxes serve both as a means of generating revenue for local budgets and as a lever for stimulating investment activity within territorial communities. The proposed matrix elucidates the nature of local taxes, shifting the paradigm from a purely fiscal approach to viewing them as an institutional lever for development and a tool for ensuring the financial sustainability of territorial communities. The practical significance of these findings lies in their potential application to the refinement of Ukraine’s Budget and Tax Codes, specifically regarding the broadening of approaches to the definition of "local taxes."
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