Taxation of real estate has developed with first great civilizations, over 4000 years ago. Today, real estate taxation concern to real estate transactions and possession of immovable property. Revenues from real estate taxes are due to its involvement in the local environment in principle intended to finance local governments.
Regarding the principle of the welfare state, the taxation of real estate requires special attention because it means a governmental intervention in the individual property. In the case of real estate tax regulation that bases on the concept of strictly object tax, which therefore do not consider personal circumstances of the taxpayer, the tax burden can lead to deterioration of the individual social situation. From the perspective of the welfare state, particularly vulnerable to the real estate taxation are residential property and - under the burden of the economic crisis - also the commercial real estate of small firms. When these properties are taxed, it is essential to ensure that the tax will not erode the substance of the tax source and lead to its destruction.
Current legislation on the taxation of real estate in Slovenia is inconsistent and outdated, so the tax reform in this area is undoubtedly needed. However, the legislator should put a lot more effort to reform the system right than in previous attempts. The last attempt to introduce real estate tax in 2013 has in fact violated a whole series of fundamental constitutional norms.
Future regulation of property tax should be based on a constitutionally consistent valuation of real estate including ensured procedural guarantees for the protection of individual rights. Taxation should also contain some specific tax relief for residential property in the amount of the standard apartment; it should be also particularly directed to the taxation of wealth and should properly distinguish between large and small companies.