Impact of Fiscal Decentralization on Motor Vehicle Taxation in the Slovak Republic

The article deals with the motor vehicle tax in relation with fiscal decentralization, particularly from 2005 with competence delegated to the self-governing regions in the area of motor vehicle tax. The result of this provision in the field of fiscal decentralization is increasing of differences in the motor vehicle tax burden in self-governing regions of Slovakia. The paper is the result of solving a series of impact studies solved by the authors in this field. Gradually over time from the transfer of competences in setting tax rates on motor vehicles to self-governing regions and usage of the incomes of this tax can realistically assess the development and impact of this element of fiscal decentralization in the Slovak Republic as well as propose a solution of resulting situation. The aim is to eliminate differences in motor vehicle tax burden at regional and interstate level while maintaining the current level of tax revenues of self-governing regions.