Practical experience and the significance of the settlement tax in Hungary

The study deals with the theoretical and practical issues of settlement taxes as a special type of local taxes. The settlement tax is a unique type of local tax introduced in 2015, which can be levied on anything that is not subject to any other public or local tax. Municipalities, therefore, have a relatively large margin of discretion in setting the settlement tax. Within the framework of the present research, the significance of this type of tax within the Hungarian municipalities was examined from both a regulatory-theoretical and a practical perspective. It can be concluded that while from a theoretical-regulatory point of view a workable model for the implementation of this type of tax has emerged, the fiscal significance of this tax and its practical application is less popular. This study evaluates and analyses the period since the introduction of the settlement tax in the Hungarian legal system.