Local Finances in Republic of Albania, Local Taxes as part of them.

Decentralization is a process where authority and responsibility for certain functions is transferred from the central government to local government units. At the foundation of decentralization is the principle of subsidiarity, according to which "the exercise of public responsibilities should, in general, belong more to the authorities closest to the citizens." Decentralization has its own dimensions, political, administrative and financial, which interact with each other and essentially represent the three components of power. Financial decentralization refers to the transfer of financial power to the local level, in order to equip it with greater authority in the administration of revenues and expenditures. In this article is analyzed the relation between central and local government about the local finances. Then in focus of the paper has been the legal basis that regulate the local finances as: Law 139/2015 "On Local Self-Governmnet", Law no. 68/2017 on Local Finances and 4. Law No. 9632 dated 30.10.2006 "On the Local Tax System" as amended. Another part of the paper has analyzed the local taxes as the main source of the local units and the different types of them. In the final part of the paper is talked about the conclusions that arise.