Stimuli contributing to local property taxation – with the focus on spatial effects of industry and functional urban areas

Fig. 1

Results of Granger causality testing

Null hypothesis	F-statistic	Probability
Large industrial facilities do not Granger cause the increase of LC in municipalities within FUAs	16.293	0.010**
FUAs do not Granger cause the increase of LC in municipalities with large industrial facilities	9.1567	0.029**
Mimicking behaviour do not Granger cause the increase of LC in municipalities within FUAs	5.7500	0.062*
FUAs do not Granger cause the mimicking behaviour	0.7862	0.416
Mimicking behaviour do not Granger cause the increase of LC in municipalities with large industrial facilities	0.0299	0.869
Large industrial facilities do not Granger cause the mimicking behaviour	1.3851	0.292

The response to the fiscal stress by the municipalities in the Czech Republic, 2008–2018

	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Revenue, CZK bn	269.2	261.3	283.6	268.6	241.1	256.2	272.9	279.5	279.0	294.2	330.9
Expenditure, CZK bn	253.6	279.4	287.0	269.8	235.1	238.7	263.9	257.6	239.3	272.8	322.6
Debt, CZK bn	80.1	80.6	83.3	82.4	90.0	92.2	88.9	86.9	71.9	69.0	68.6
Property tax revenues of municipalities, CZK bn	5.1	6.3	8.7	8.6	9.6	9.7	10.0	10.3	10.6	10.8	10.9
Property tax as a % of municipalities revenue	1.9	2.4	3.1	3.2	4.0	3.8	3.7	3.7	3.8	3.7	3.3
Property tax as a % of revenue of municipalities with LC > 1	-	5.0	6.2	6.4	6.2	6.1	6.1	6.0	6.0	6.1	6.2

Application of higher local coefficient in 2009–2019

	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Mun. LC	389	284	299	404	494	518	522	562	588	598	599
Mun. LC (% of all)	6.2	4.5	4.8	6.5	7.9	8.3	8.3	9.0	9.4	9.6	9.6
MC (% of mun. LC)	59.1	54.2	57.5	62.4	68.0	70.3	70.9	72.6	73.5	73.4	73.1

Municipalities with one or both factors (industry and FUA) that apply the policy of higher local coefficient in 2009–2019

	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
IFU mun. LC	263	211	217	289	342	358	359	389	405	409	411
IFU mun. LC (% of mun. LC)	67.6	74.3	72.6	71.5	69.2	69.1	68.8	69.2	68.9	68.4	68.6

Municipalities with large industrial facilities that apply the policy of higher local coefficient in 2009–2019

	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Ind. mun. LC	191	147	154	204	236	248	248	268	276	279	279
Ind. mun. LC (% of mun. LC)	49.1	51.8	51.5	50.5	47.8	47.9	47.5	47.7	46.9	46.7	46.6

Industry in municipalities with the highest share of increased total revenue due to the increased local coefficient

Municipality	Industry	Municipality	Industry	Municipality	Industry
Dukovany	Nuclear PP	Libis	CP	Stonava	Mining
Rouchovany	Nuclear PP	Zaben	CP, electrical substation	Dolni Nivy	Quarry
Temelin	Nuclear PP	Sivice	Cement plant, PPP	Vrskman	Quarry
Trnavka	Coal PP	Bitozeves	Industrial zone	Stare Hamry	Ski resort
Vresova	Steam-gas PP	Velemysleves	Industrial zone	Bila	Ski resort
Nizni Lhoty	MP, PPP	Uzice	Industrial zone	Vlkancice	Recreation area
Chrastany	MP, PPP	Modletice	Shopping zone
Nosovice	MP	Otvice	Shopping zone	Vysoka	Fuel store
Paskov	CP	Cestlice	Shopping zone

Municipalities within FUAs that apply the higher local coefficient policy in 2009–2019

	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
FUA mun. LC	156	143	142	189	229	242	242	262	276	277	280
FUA mun. LC (% of mun. LC)	40.1	50.4	47.5	46.8	46.4	46.7	46.4	46.6	46.9	46.3	46.7