City Association warns: No new financial burdens for communities!

City Association warns: No new financial burdens for communities!

Vienna, Österreich - On May 22, 2025, the city association unanimously decided on a series of demands on the federal and state governments at the 74th City Day in Eisenstadt. This resolution demands that the cities and municipalities do not impose any new financial burdens in order to secure their ability to act. The increased costs in areas such as health, care and elementary pedagogy should be borne together by the federal and state governments in order to ensure the financial stability of the municipalities. In addition, a reform of property tax is required in which the short -term increase in the lifting rates is also to be treated.

City Association President Michael Ludwig emphasized that the tasks of the communities have grown more dynamic since the last reform than that of the federal government. In this context, an evaluation of the vertical distribution key in the financial equalization and the need for a rapid implementation of a cross -area body -wide data infrastructure is also required. Such an infrastructure would help the cities and municipalities to work more efficiently and to improve access to registers. In addition, a reduction in the dependence on non-European IT groups is required to ensure the digital sovereignty of the municipalities.

Financial means and responsibility

In order to be able to cope with the future challenges, the urban association also calls for an annual financial assignment of 300 million euros to the cities and municipalities until the current financial equalization is offset. This could help strengthen the financial basis of the municipalities. The inadequate financing of leisure educators, educators and school assistance remains an unsolved problem, the costs of which should also be borne by the federal government.

Property tax plays a central role in local financing. According to the German Association of Cities and Municipalities (DStGB), this generates an economic advancement of around 15.5 billion euros annually. However, the unit values on which the tax is based comes from outdated value assessments. In 2018, the Federal Constitutional Court declared basic taxation based on this unit assessment for unconstitutional. A reform of the property tax was therefore essential to improve the legal situation.

reforms and standardizations

The need to re -regulate property tax was determined, whereby the deadline for implementation is going until December 31, 2024. A total of around 36 million economic units have to be re -evaluated. In order to support this reform, the DStGB has created information material with its member associations that are aimed at the property taxpayers in the states and municipalities.

The financing of the tasks of cities and municipalities is essential. About 40 percent of the ongoing income comes from earnings shares in community federal taxes. The main finance sources are own taxes, in particular the local tax and property tax. Further income includes fees and fees. An agreement on the standardization of the state tax regulations with the Federal Tax Code (BAO) was also achieved, which is an essential administrative framework.

Overall, the city's day shows the urgency with which the municipalities are dependent on support in order to continue to be able to perform their tasks efficiently and effectively. The city association called on everyone involved to work constructively and tackle the upcoming challenges together.