Property tax reform: what the communities can really expect!

Property tax reform: what the communities can really expect!

The discussion about property tax reform in Austria picks up speed! Wifo boss Prof. Gabriel Felbermayer and IHS boss Holger Bonin raises essential questions on how to hear on ORF. Accordingly, municipalities are concerned about income that should have escaped through a poor update of property tax. The Austrian house and landowner association (ÖHGB) counters: "A wrong claim is set up in the real estate area!" ÖHGB President RA Dr. Martin Prunbauer emphasizes that many taxes and levies on real estate are already due - from real estate transfer tax to real estate yield tax. Thus, the idea that there is a lack of substance tax errors is not durable.

finance and administrative challenges

The reform could have serious consequences for the financing of the communities. Prunbauer emphasizes that there will be no additional funds for the municipalities, but only a new adjustment of the income structure, since an increase in property tax revenue would be neutralized by reducing the financial equalization. This was also made in the Federal Ministry of Finance where the property tax is emphasized as an essential source of income for cities and municipalities, which is required for the financing of fundamental infrastructure projects, including schools and daycare Streets.

The intended transfer of the assessment of properties from the tax offices to the municipalities could also lead to an increase in administrative expenses. Negative experiences of other federal states with vacancy taxes can already be observed, which is why Prunbauer warns that the hoped -for income could be quickly eaten up by additional costs. The fears of a drastic increase in property tax, especially for substance taxes promised in the election campaign, cause unrest. The ÖHGB appeals to the responsible parties to comply with their election promises and to rethink the reform plans.