СТАНОВЛЕННЯ ТА РОЗВИТОК ІНСТИТУТУ МІСЦЕВОГО ОПОДАТКУВАННЯ В УКРАЇНІ, THE FORMATION AND DEVELOPMENT OF THE INSTITUTION OF LOCAL TAXATION IN UKRAINE

<jats:p>Introduction. The institution of local taxation plays a key role in building an effective public finance system and serves as the fundamental basis for fiscal decentralization. Research on local taxes and fees in Ukraine is extremely important because an effective local taxation system helps strengthen the financial capacity of communities. Local budget revenues derived from local taxes and fees define the financial base of local self-government bodies, which also guarantees their financial independence and ensures the financial stability of local budgets in conditions of financial instability. The purpose of the article. The purpose of the study is to deepen the theoretical and methodological approaches and develop practical recommendations for improving the effectiveness of the local taxation institute. Methods. In the process of the study of the institute of local taxation, general scientific and special methods of scientific knowledge were used, in particular: historical and systematic approach, analysis and synthesis, scientific abstraction. Results. The Institute of Local Taxation ensures and regulates the implementation of local taxes and fees through a system of technical support and legal regulation, as well as informal norms of conduct for taxpayers, in order to build the financial base of local self-government bodies and enable them to exercise their powers.  To enhance the fiscal role of local taxes and fees, local governments must promote the expansion of the local tax base, the development of local businesses, increased employment, and the improvement of the administration of local payments. Conclusions. The main objective of transforming the local taxation system—which will help improve the fiscal efficiency of local tax and fee administration—is to enhance information and technological infrastructure. It is argued that, to enhance the fiscal role of local taxes and fees, local governments must promote the expansion of the local tax base, the development of local businesses, and improved employment, as well as ensure the improvement of local payment administration. Promising areas for future research include the specific applications of Big Data tools for the administration of local payments, as well as the harmonization of domestic legislation on local taxation with the financial standards of the European Union.</jats:p>