(CIANEWS) - The proposal to increase the property tax is considered by the Union of Towns and Municipalities of the Czech Republic (SMO) to be a step in the wrong direction. When setting it, an analysis of the possibilities of a given place is important. Its parameters are proposed and approved by the municipal council and the revenue is then 100% of the municipality's income. SMO chairman František Lukl said that although they understand the efforts to consolidate public finances, the state puts local governments in the role of subordinate and not partner. He also rejects the government's explanation that the collection of this tax brings a heavy financial burden. He added that cities and municipalities are paying extra annually for delegated agendas without proper reimbursement.