Subject Under the conditions of continuing economic instability, many emerging markets experience budget deficit. All the levels of the budget system suffer due to decreased tax revenues; however, the impact on local budgets is the most critical, since one of the main sources of their tax revenues is personal property tax, generally. Although the role of property taxes in the revenue part of budget systems of the CIS countries is insignificant, the authorities try to increase revenues to local budgets by reforming personal property tax. The authors consider buildings and constructions as taxation aspects. Nevertheless, if some countries only changed the procedure for determining a tax base, increased tax rates or canceled tax benefits, other countries radically modernized the personal property tax. Trying to develop an optimal mechanism of personal property taxation (Azerbaijan and Russia declared planned changes), the CIS governments usually appeal to the experience of developed countries, without taking into account the experience of States with a similar structure, level of economic development, mentality and so on. Objectives The purpose of this paper is to identify positive experience of reforming one of the most important local taxes in the CIS countries (personal property tax) and its possible use in the Russian practice in the context of expected introduction of a real property tax. Methods Using the methods of comparative and system analysis, the authors are describing the specifics of tax elements of personal property tax. Results The article shows the role of property tax in the budget system of the CIS countries, defines the features and problems that arise during property taxation, describes the existing approaches to personal property taxation, and identifies possible areas of reforming the tax. Conclusions The study has revealed that the CIS countries still have a low share of property taxes in the revenue side of the budget system due to both the poor elaboration of taxation mechanism and the lack of a complete cadastral register of properties and their owners. The method of assessing tax base in most countries is not clear and entails non-payment of the tax. In addition, some countries (the Russian Federation) still have a number of unjustified tax benefits, but other countries (Ukraine) do not respect the tax equity principle, as the tax assessment bases on the floor space of property, excluding differences in its quality, location, etc. Currently, Kazakhstan applies the most transparent and clear method of calculating a real property tax, which ensures observance of the tax equity principle. Other CIS countries can use this method for the tax reforming.
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