Although towns and cities are believed to be owners of land in this country, they do not benefit from it. Land markets are not formed in these towns yet, but their formation may be started right now. Purchases of land parcel may happen only if market prices for land are established, that is the price a purchaser agrees to pay; and the purchaser will pay only that much as he/she can obtain income from it. This principle is reflected in the methods of expert valuation of land parcels used throughout the world and now formally accepted in Ukraine. It should be noted that in the Chernihiv and Poltava oblasts first expert valuations were done more that a hundred years ago. Implementing the above principles today we do not invent anything new, and do not borrow anything strange, we just go back to our history.

Under rational operation the value of land grows in time. That is why in many foreign countries normative monetary valuation of land parcels, which makes the basis for taxation, is considerably lower than expert valuation, which relies on potential income. It is clear that such income depends on the economic situation on the whole.

Nowadays when private enterprises are offered for sale, their prices include prices of land parcels occupied by such enterprises. But towns do not gain anything from these transactions with land. If enterprise land parcels had been privatized and duty collected from each resale, this would have generated significant revenue to the city budget. Suffice it to say that in Western countries land tax constitutes approximately 15% of the revenue to local budgets, and duties charged on purchase transactions for land parcels - approximately 30%.

The law allows local radas to sell land to enterprises in the course of privatization, but for the cause to be successful there should be understanding that a seller (local rada) must establish land prices taking into account economic actualities.

Land is a particular type of commodity that always stays at the same place. New owner can not move it somewhere else. An owner of a land parcel invests money in it, thus raising its value, and benefits are obtained not only by him, but also by the community.