Due to the negative consequences of vacant homes, impossibility to use scale efficiency in service delivery, highlighting the social gaps, emergence of risks (social and cultural anomalies), and price fluctuations in the housing market, some local governments, especially in cities with growing populations, have taxed vacant homes and used the proceeds to improve housing and urban development services. In Iran's economy, the issue of tax on vacant houses has always been a problem before the revolution so that in different eras various laws have been passed to deal with it. However, in practice, it has faced numerous problems and bottlenecks. One of the most important reasons for these challenges is related to ignoring the executive body in applying this tax. In particular, due to the lack of attention to the position of municipalities in the process of identification and taxation of vacant properties and lands, these laws have failed to achieve their economic and social goals. However, because of owning a comprehensive system of auditing real estate and urban lands, municipalities have a comparative and absolute advantage over other bodies (Ministry of Roads and Urban Development and the Tax Affairs Organization) in the process of implementing the tax on vacant houses. The aim of this report is to describe and explain the role and position of municipalities in the implementation of the tax on vacant houses, its importance in creating new sources of income for Tehran Municipality, which results in improvement of the quality and services provided,