Territorial Tax Rate: A Tool for Financial Assessment and Contribution to Local Development

Abstract

This article aims at assessing tax rate as a local government tool for financial analysis and control depending on decisions for territorial development. Such assessment was focused on the key role of territorial tax rate in collecting revenues, and its relation to the territorial added value. Hence, tax rate can contribute to meet real needs based on government's financial management for local development. The assessment starting point was an entirely analytical approach on the main difficulties not only concerning tax management as a whole, but also its relation to territorial strategic management. A logical schedule describing the main steps to be followed by the local government, and not the tax collecting office, in order to determine (and evaluate) the territorial tax rate is suggested. Due to the local government decision making scope, this tool can serve the purpose of solving main difficulties in collecting   revenues to further achieve local development financing.