Revenue-sharing (Finanzausgleich), sharing of revenue and costs between the federal government and the local authorities at municipal and provincial level. The Public Finance Act of 1948 forms the basis for dividing the power to levy taxes between the federal, provincial and local governments. Under the joint taxation system, the federal government levies the most important taxes, and the revenues are divided up among the different levels of government according to a specific system. The specific details concerning the assignment of taxing power and distribution of revenues are determined by the Revenue-Sharing Act, which sets the distribution ratio for several years at a time.
Literature#P. Pernthaler, Oesterr. Finanzverfassung, 1984.