Local fees are the revenue of communities. Communities can influence the height of this revenue. Local fees are modified the Act No. 565/1990 Coll., concerning local charges. Nowadays communities can get revenues from nine local fees. Community can make a decision which fees will use on its territory. In a theoretical part are described notions like fiscal federalism, its history, forms and fundamentals; fiscal decentralization, the revenue of communities and their dividing; local fees and other notions serving to introduce into existing problems. A practical part is focus on local fees. The point of the work is to find which local fees communities use, in which height, what is the percent occurrence of utilize of existing fees in the year 2007, which fees are saving most often, that fees produce the highest yields and how local fees develop. The object of the study is communities of South Bohemia region. They are segmented into five size groups. The study is completed by tables and graphs and relevant conclusions.

This diploma thesis analyzes the impact of the fiscal federalism policy on a municipality economy in the Czech Republic. The theoretical basics consist of a historical analysis of municipalities' legal status and mode of financing. That is followed by defining of a fiscal federalism model and a fiscal decentralization model, and by taxation and income analyses. Final part focuses on the income and expenditure analysis of municipalities in the period 2002-2010 and an overall evaluation.