In this thesis we examine potential consequences of the proposed changes to the real estate taxation in the Republic of Slovenia by comparing two municipalities. We first analyse the existing compensation for the urban land usage and real property tax in Urban Municipality Kranj and Municipality Divača. We then consider factors that affect calculation and magnitude of both levies. Comparing the data on both levies from both municipalities we discuss differences between them, in particular what types of property the forthcoming Real Property Tax Act (2013) will affect most in respect to the amount of taxation. We establish that if Real Property Tax Act (2013) were introduced, owners of flats, houses and business properties would get taxed considerably more than previously. The only exception are owners of real estate for industrial use, most of whom would pay less tax than before. Because municipalities would become liable to real property tax, they would be worse off financially in the forecast period 2014 – 2016 than before when they were not liable to compensation for the urban land usage. In this period Urban Municipality Kranj would pay annually 825,000 € in real property tax and Municipality Divača 77,000 €.