New Tourist Tax as a Tool for Municipalities in the Czech Republic

  • Michal Radvan Masaryk University, Faculty of Law
Keywords: tourist tax, tourist charge, local tax, local charge, Czech Republic

Abstract

The Czech Republic is one of many states where the new legal regulation of tourist taxes was introduced to limit the shortcomings of the original regulation. The aim of this paper is to define the opportunities and threats of the new regulation in the Czech Republic in the area of tourist taxes. To achieve the purpose of this article, the tourist tax is defined and Czech legal regulation valid until the end of 2019 and since 2020 in the given area is analysed. The hypothesis that the new regulation is perfect and ideal for the tax administration and for the municipalities was confirmed only partially. While most of the critical issues were solved and the new tourist charge is a good step for both municipalities and the tax administration, the charge rate of 21 CZK in 2020, resp. 50 CZK in the following years is not adequate. With the new regulation, municipalities got new opportunities, primarily to increase their revenues. The single tourist charge makes the system easier for all stakeholders: for municipalities, for tourists, and for quartermasters. Issues arise especially concerning the simplified evidence and the non-chargeable long-term stays. Municipalities should be particularly careful when defining the exemptions and differentiating the charge rate for specific dates in the year, or specific parts of the municipality. The unequal treatment might be seen as discrimination or even unfair public incentive.

References

Brumen, B., Gorenak, M., Rosi, M., Rangus, M. (2016) Regional Tourism Indicators and Smart Specialization Strategy, Lex Localis - Journal of Local Self-Government, 14(3), pp. 419-430, https://doi.org/10.4335/14.3.419-430(2016).

Burns, S. (2010) Local Authorities, Funding Tourism Services and Tourist Taxes, Local Economy, 25(1), pp. 47-57, https://doi.org/10.1080/02690940903545398.

ČTK, iDnes.cz (2019) Bič na Airbnb. Pobyt jen s kývnutím SVJ nebo v určitém čase, navrhují politici, available at: https://www.idnes.cz/ekonomika/domaci/airbnb-omezeni-ubytovani-kratkodobe-praha-platformy-byty-turistika-turiste.A191122_101119_ekonomika_svob (January 30, 2020).

Demin, A. & Juchniewicz, E. (2018) Certainty of Taxation in the Light of Russian Real Estate Tax in The Challenges of Local Government Financing in the Light of European Union Regional Policy (Brno, Masaryk university) https://doi.org/10.5817/CZ.MUNI.P210-9087-2018.

Dwyer, L., Forsyth, P. & Dwyer, W. (2010) Tourism Economics and Policy (Bristol: Channel View Publications).

European Commission (2017) The Impact of Taxes on the Competitiveness of European Tourism. Final Report, available at: http://www.europarl.europa.eu/cmsdata/130660/The%20Impact%20of%20Taxes%20on%20the%20Competitiveness%20of%20European%20tourism.pdf (January 30, 2020).

Forsyth, P. & Dwyer, L. (2002) Market Power and the Taxation of Domestic and Intemational Tourism, Tourism Economics, 8(4), pp. 377-399.

Gliniecka, J. (2018) Functional Aspects of the Legal Structure of Tax on Means of Transport in the Polish System of Public Levies in The Challenges of Local Government Financing in the Light of European Union Regional Policy (Brno: Masaryk University) https://doi.org/10.5817/CZ.MUNI.P210-9087-2018.

Hughes, H. L. (1981) A Tourism Tax — The Cases for and against, International Journal of Tourism Management, 2(3), pp. 196-206, https://doi.org/10.1016/0143-2516(81)90006-2.

Mak, J. & Nishimura, E. (1979) The Economics of a Hotel Room Tax, Journal of Travel Research, 17(4), pp. 2-6, https://doi.org/10.1177/004728757901700401.

OECD (2020) Key tourism indicators, available at: https://stats.oecd.org/Index.aspx?ThemeTreeId=10&DatasetCode=tourism_key_ind_pc (January 20, 2020).

Pařízková, I. Barta, M., Müllerova, K. & Malatin, M. (2013) Místní poplatky v teorii a praxi (Local Charges in Theory and Practice) (Brno, Masaryk University).

Próchniak, M., Oplotnik, Ž. J. & Vojinović, B. (2016) Convergence in the Tourism Sector at the Local Level: Empirical Evidence from the EU Regions, Lex Localis - Journal of Local Self-Government, 14(3), pp. 557-574, https://doi.org/10.4335/14.3.557-574(2016).

Radvan,M. (2012) Místní daně (Local Taxes) (Prague, Wolters Kluwer).

Radvan, M. (2019) Municipal charges on communal waste: do they compete with the immovable property tax?, Journal of Financial Management of Property and Construction, 24(2), pp. 148-165, http://doi.org/10.1108/JFMPC-02-2018-0007.

Radvan, M. & Kolářová, Z. (2020) Airbnb Taxation in The Financial Law towards Challenges of the XXI Century: Conference Proceedings (Brno, Masaryk University).

Radvan, M., Mrkývka, P. & Schweigl, J. (2018) Challenges of the Implementation of the European Charter of Local Self-Government in Czech Legislation, Lex Localis – Journal of Local Self-Government, 16(4), pp. 895-906, http://doi.org/10.4335/16.4.895-906(2018).

Románová, A., Radvan, M. & Schweigl, J. (2019) Constitutional Aspects of Local Taxes in the Slovak Republic and in the Czech Republic, Lex Localis – Journal of Local Self-Government, 17(3), pp. 591-616. http://doi.org/10.4335/17.3.591-616(2019).

Tun, Z. T. (2019) Top Cities Where Airbnb Is Legal or Illegal, available at: https://www.investopedia.com/articles/investing/083115/top-cities-where-airbnb-legal-or-illegal.asp (February 25, 2020).

Published
2020-10-29
Section
Article