Influence of Criteria of Built-up Areas in the Village to the Total Share of Municipalities on Shared Taxes

There has become valid the limiting condition of 10 hectares per an inhabitant in the criterion of cadastral acreage of municipalities in the budgetary taxes. The limiting condition has been valid from the year 2013. The limiting condition was implemented to prevent groundless amount of incomes to a budget of some municipalities, especially border municipalities which municipalities get on the basis of its large cadastral area in relation to the cadastral area of the whole Czech Republic. The topic of the article is to compare of incomes of municipalities on the basis of the sole criterion – cadastral area with limiting condition 10 hectares per an inhabitant or built-up area in a municipality (m2). The goal is to find out if the new limiting condition will influence more to the decreasing of extreme values in redistribution in connection with compare criterion of built-up area in a municipality (m2). The criterion of built-up area is the equivalent to the limiting condition of 10 hectares which the Ministry of Finance of the Czech Republic applied in calculation of the share taxes due to mentioned facts. Final distribution of the financial means to the budget of the municipalities is shown in the graphical representation and there are observed incomes per inhabitant in 4 big cities – Prague, Brno, Ostrava and Plzeň and median values of all others municipalities. The results show that in comparison of the criterion of cadastral acreage of municipalities with limiting conditions and built-up area in a municipality (m2) the extreme values are decreasing if both criterions are used. But in the criterion of built-up area of municipality is the redistribution of means more homogeneity per one inhabitant. We can pronounce that if we use the criterion of re-built area of municipality the financial means are more redistributed in favour of bigger settlement unit while in the criterion of cadastral acreage of municipality it is more the opposite.