The need to develop of new model of local government with effective and sufficient sources of formation of local budgets with active participation of local community are proved in the article. The authors believe that the citizen self-taxation funds have to become in the long term an effective institutional and infrastructure element of local government, and partnership, trust and an initiative of local community in the solution of questions of local value – a basis of competition and efficiency of municipalities in Russia.

The need to develop of new model of local government with effective and sufficient sources of formation of local budgets with active participation of local community are proved in the article. The authors believe that the citizen self-taxation funds have to become in the long term an effective institutional and infrastructure element of local government, and partnership, trust and an initiative of local community in the solution of questions of local value – a basis of competition and efficiency of municipalities in Russia.