Ministry of Finance and the municipalit y BAR Secretariat for Economy and Finance

1. Ministry of Finance and the municipality BAR Secretariat for Economy and Finance An example of good practiceMUNICIPALITY OF BARProjects: The real estate taxMarket Value-Based Taxation of Real Property, Ljubljana,April 11-15,2011 Acting Secretary's Klikovac Dejan M.Sc.

2. Law on Property Tax Montenegro is a country with about 620,000 inhabitants and is divided into twenty-one (21) units of local government. The reform of the tax system in Montenegro, as well as the overall financial system, begins in year 2001. The main goals of tax reforms are aimed at making the tax system simpler, more efficient and easier to implement and that the tax reform based on principles of simplicity, fairness, neutrality, efficiency, stability and applicability. Tax on property regulated by the Law on Property Tax ("Official. Gazette of RM" no. 65/01, 69/03 and 75/10), which entered into force on January the 1st 2001, effective from January the 1st 2002, the Decree on detailed criteria and methodology for determining the market value of real property ("Off. Gazette of RM" no. 23/03, 25/04, 40/04, 60/04 and 31/05) and the Regulations on the contents of the report on tax payment real estate ("Off. Gazette of RM" no. 33/05). On the basis of the Law and Regulation municipalities have adopted their own decisions on the introduction of property tax.

3. Law on Property Tax The new legislation committed the harmonization of tax treatment of real estate in Montenegro with international practice. The basic characteristics of international practices in property taxes as soon as can be summarized as follows: -Property tax is the only municipal tax and the taxpayer knows who is taxation, which amount to pay and what the purpose of payment of taxes is -Taxpayer is clear what is taxed and how to determine tax liability-Tax structure should be clear with few rates, exemptions and special treatment and release all taxpayers in the same way-Tax should be easily applicable and understandable to the taxpayers and the tax authorities-Municipal authorities are responsible for council rates and have the authority to set rates that are in accordance with municipal decisions. Subject to taxationProperty tax paid on real estate located in Montenegro, including: land, buildings, residential buildings, business units and other buildings. Buildings and other buildings that are in separate ownership of land and housing units of buildings can be taxed separately.Tax BaseThe base property tax is the market value of the property at January the 1st of the year for which the tax is assessed. The main criteria for determining the market value of real estate is: allocation of real estate, property size, location of the immovable property, the quality of real estate and other elements that may affect the market value of real estate. Detailed criteria and methodology for determining the market value of real property prescribed by the Government of the State of Montenegro, the proposal by the Minister of Finance. The methodology aligns with market conditions, at least once in three years.Obligations from real estate tax occure January the 1st of the year for which the tax is assessed.Market value of individual property, based on this methodology determined by the competent tax authority of local governments.

4. Introduction- municipalitiyof BAR *Bar a modern city with wide boulevards,surrouned by Mediterranean vegetation,Bar represents the biggest tourist and nautical centre at the entrance to the Adriatic Sea.Two equally beautiful shores in the Municipality of Bar,those of the adriatic sea and Lake Skadar. *Secretariat of Economy and Finance consists of three departments and the Finance Department, department of local government revenues and the Department of Economics. * Projects: property tax, treasury and municipal powerCooperation - GTZ, SNV-property taxCooperation with the Urban Institute-Treasuries* Adapted from the base year 2003, the Directorate of Public Revenues* The first software for corporate real estate ICMA   When transferring a database ICMA has made ​​mistakes which caused delay in the work, and the software was not multi-user* The current software TerraSoft (application PN), Safe Software

5. SCHEDULE OF COMPUTER-TAX ON REAL ESTATE AND TREASURY IN THE MUNICIPALITY OF ELECTRONIC 10 licenci ETERRAPN + 2 TT USER REAL ESTATEJMBG • Details ofEletronicADDRESS OF REAL ESTATE • Area m2 • sekretaryNO FLOOR PLAN, LOTS, LIST IT ADMINISTRATOR • KADASTAR SERVER • account SERVER cutting • DATA ENTRY, PRINTING SOLUTIONS, UPDATES • CHANGES, THE PARTIES .. server e-MunicipalityCHIEF ADMINISTRATOR (SECOND-INSTANCE) 10pc • The Citizens BureauLegal Service • +Treasury • Protocol number, date of the decision

6. Positive experience-Germany Wisbaden                (records a bit .. every tree has a number) • They can easily lead to the spread of computers connected to the network. (The whole municipality is networked) • On the server operating SQL and Oracle 9i database • Cadastre in the same building, LAN -Local Area Network.. • The implementation process is not easy • Zone by the number of plots

7. Treasury operations • The project of effective local government, Urban Institute in the municipality of Bar is carried out a pilot project-introduction of local government treasury. Municipality of Bar is the first in Montenegro started with the implementation of treasury systems 01.januara 2005.The primary purpose of the treasury of local government to improve the implementation of financial management at district level in available funds.This is primarily achieved by introducing modern financial management information system that includes computerized accounting, based commitments and spending control, a system for cash and debt management and financial reporting. (timeliness, reliability, clarity, simplicity, transparency)Treasuries based on the principle of carrying only recording of cash transactions through the Consolidated Treasury Account, all in accordance with the Law on Local Government Finance, Instruction on the Treasury and international accounting standards for the public sector.REPORTS DAILY, WEEKLY, MONTHLY, YEARLY

8. Treasury operations • Consolidated treasury account includes all accounts on which is recorded the state money, which are a function of the municipality or the consolidated treasury account shall be paid all remuneration and from all payments from the budget.Treasury is realized through the exercise of the following functions, namely:Financial PlanningCash managementExpenditure ControlDebt ManagementBudgetary accounting and reporting andFinancial management information systems

9. Analysis of charge € property tax collection at 31.12.

10. Analysis of charge € property tax collection as of 02.04.

11. Chart supervise the collection of property tax in the year 2007,2008,2009,2010

12. Training • Information system contributes to the improvement of collection, enforcement needed .. mortgages .. • realizes the process of training staff (ECDL and others) • Understanding of relevant, especially the Mayor, Zarko Pavicevic contributes to efficient removal of barriers that occur in this job • Good cooperation with the Service Chief Administrator, the appellate • Knowledge, efficiency, project guillotine • LONG-TERM PLAN • Great effort, job, database should handle • Faster work performance, satisfaction?

13. Plans • Project ...Fiscal Cadastre-TAX • LAMP-Land Administration and Managementproject(World bank) • INSPECTION-in during last 12 months found in the field of new ca .. 300.000m2.. DAILY REPORTS • (there are illegally built objects that are not registered, the number of objects in the records has a much smaller surface area than the actual on the ground, a number of buildings and land in the base (real estate management) lead to the wrong purpose (business and residential, construction, ruins, culture, land ..) • Reduce the tax base and it is filled by all taxpayers • TEAM WORK VERY IMPORTANT

14. REPORTS ON MUNICIPAL TAX ON REAL ESTATE FOR 2010.

15. THANK YOU