The economic basis of individual property tax: the benefit view and the capital view

The author examines the economic theories about the distribution of the burden of paying the local real estate tax (the theory of goods and the theory of capital). Determines the economic basis for personal property tax in Russia. Analyzesthe problems of unequal taxation of real estate objects comparable in terms of market value, depending on their location. Concludes that the theory of benefits is inapplicable for determining the economic basis of the corresponding tax, as well as that the application of the principle of equality of the tax burden is possible only in a particular municipality.