The special contribution as an efficient tax for municipal financing: challenges in its implementation

Abstract

The purpose of this article is to analyze whether the special tax, also known as the improvement tax, can constitute an efficient tax for municipal financing. This tax has been gaining ground in recent years, especially in the academic and legislative spheres; however, its implementation in public works executed by local governments has, in many cases, been limited or even nonexistent. The importance of this study goes beyond following the traditional dogma of the tripartite classification of taxes—taxes, fees, and contributions—and its classic definition. It seeks to determine whether the recovery of public investment should be achieved through a tax, such as the property tax or the excise tax, or whether, on the contrary, it should be carried out through a special tax. This issue represents a challenge for both tax practitioners and public managers, as well as a point of reflection for the academic and legislative spheres. To achieve this objective, a systematic review with a qualitative approach was conducted, following the PRISMA protocol. First, information from studies published in indexed journals such as Scopus and Scielo, which directly address the topic, was compiled into a matrix. Subsequently, e-books and other sources related to the research were also considered. The results obtained, both at the doctrinal and legislative levels, will provide a clear view of whether the special contribution is truly an efficient management tool for municipal financing, or whether, on the contrary, it is used as a political resource by the current government.