The purpose of this document, as the title states, is to identify the challenges faced by the municipalities in the Republic of North Macedonia with the local tax system, with a focus on property tax. The challenges that are identified are considered through the elements of the property tax, namely the challenges in determining the tax base and assessment of the value of the property as well as the management of the system (technical-administrative).

At the same time, this analysis provides a brief overview of the dynamics of public finances at the local level in the Republic of North Macedonia in the past decade through tax revenues.

This document emerged as a necessity during the implementation of the tax responsibility project by the Center for Economic Analysis (CEA). During the implementation of the project, shortcomings and obstacles faced by the local administration in terms of more efficient management of the local tax system were identified, and we believe that they need to be noted in order to initiate activities to address them.

The full study is available at the following link.