An Analysis of taxation capacities and exertion of municipalities in Turkey

ABSTRACTAN ANALYSIS OF TAXATION CAPACITIES AND EXERTION OFMUNICIPALITIES IN TURKEYHüseyin Doga CELIKAFYONKARAH SAR KOCATEPE UNIVERSITYTHE INSTITUTE OF SOCIAL SCIENCESDEPARTMENT OF FINANCEJULY 2006ADV SOR: Yrd. Doc. Dr. Ibrahim DURSUNWhile the tax revenue collected in a certain country at a certain time periodreflects the taxation capacity of that country, the proportion of tax revenue to the taxationcapacity provides the tax exertion of the country. The capacity and exertion of taxation inlocal administrations, which changes according to policies imposed by the governments, isaffected by some factors only because the authority of tax collecting has been assigned to thelocal administrations in Turkey.In this study, the factors which affect the capacity and exertion of taxation ofmunicipalities in Turkey have been analysed by their demographical and economicalproperties. As a result, it has been found out that while per capita, corporation tax, theproportion of employees in industry to total employment and the number of residences perperson are regarded as the most powerful factors to explain the changes in taxation capacitiesof municipalities; the most powerful factors to explain the changes in exertion of taxation arethe proportion of employees in service sector to total employment and the number ofresidences per person.