Theoretical background: The property tax and the conscious setting of its rates constitute an important element of the fiscal policy of cities in terms of their budget revenues. At the same time, it has a direct impact on the economic and social situation of cities, affecting primarily entrepreneurs and potential investors located in their area. The article addresses the problem of identifying the types of fiscal policy of cities in Poland in terms of the above-mentioned tax and their consequences in terms of finance and urban economy. Purpose of the article: The aim of the article was primarily to identify tax strategies adopted in Polish cities and then, within selected groups of cities, to assess their effects in terms of selected financial and economic variables. Research methods: To achieve the research objective, the adopted method was a financial and comparative analysis of property tax rates and selected financial and economic indicators. The empirical part was preceded by a critical analysis of the literature on the subject. The research covered Polish cities with district rights in the years 2018–2023. Main findings: The conducted research shows that there were differences in the approach to fiscal policy in the cities studied. Cities applying a policy stimulating economic activity were characterized by, among other things, the largest number of newly established enterprises, a low unemployment rate, and at the same time slightly lower total revenue per capita. However, they retained a relatively large revenue independence. Cities applying fiscal policy (with high property tax rates) were characterized by slightly lower budget revenues and weaker economic results than the first group. However, in their case, investment expenditure was the highest, which should be assessed positively. The cities applying populist policy were characterized by the relatively weakest financial and economic situation. These were the cities that introduced low tax rates for residential properties and high rates applied to entrepreneurs.
Wichowska et al. (Tue,) studied this question.