Formation of Municipal Revenues from the Local Fee during the COVID-19 Pandemic

Abstract

Aim: The purpose of the article is to present the formation of local government units’ (LGUs’) revenues in Poland from the local fee during the COVID-19 pandemic (2020-2022) against the background of periods before the pandemic (2017-2019).

Methodology: The method of analyzing legal acts referring to the prevention of the pandemic spreading and its consequences, as well as those concerning the sources of LGUs financing was applied. A statistical analysis of using the local fee by municipalities in Poland was carried out, along with an analysis of its dependence on selected economic factors.

Results: During the COVID-19 pandemic, municipal revenues from the local fee decreased both in absolute terms and in relation to total and own revenues. The reason was a decline in the tourist activity of the population resulting from restrictions imposed on the tourism industry and the movement of the population. The decline was short-lived and did not affect the overall financial situation of the local government due to the marginal share of the fee in the revenue structure.

Implications and recommendations: Examples of just a handful of municipalities indicate the high revenue potential of the local fee, which implies the need for further research into this revenue source in order to increase its universality and efficiency.

Originality/value: The source literature offers only few studies covering entirely the individual local government revenues, especially those with marginal, sector-wide revenue performance. The article fills this gap to a certain extent.