Many property owners were unpleasantly surprised by the amount of tax for this year. Even though the tax increase was announced, some are surprised. If you are absorbing the tax increase, believe that next year you can count on an even higher amount. How is it possible? Why is that so?
The differences in property tax increases are striking. While some pay a few hundred in tax, others, on the contrary, in the order of several thousands. The reason for the substantial increase in the amount of property tax is that in some municipalities and cities there was a combination of an increase in rates from the consolidation package and a coefficient from the municipality.
This year’s property tax increase
Many property owners were caught off guard by the new tax amount and made a dent in their wallets. For most property owners, the tax has increased, but for some even several times, due to a combination of the increase in rates as a result of the government’s consolidation package and the increase in the coefficients approved by the municipality. Nothing changes the fact that the current prime minister Petr Fiala announced that his government would not raise taxes for people. So in this case, she raised them, not only taxes, but also adrenaline in the blood of many.
As a result of the approved consolidation package last year, all tax rates were increased. In addition, a number of municipalities also changed the coefficients at the same time. Thanks to this, the total property tax in some municipalities and cities has increased more. The point is that in previous years, only the units of district cities changed the coefficients. It is nice that the government’s consolidation package also brought municipalities the possibility to reduce local coefficients from below 1 to 0.5, thereby reducing the total tax as well, but this will only be possible for the tax period of 2025. However, there is no reason to rejoice in advance and believe that next year will be better. It won’t be.
The tax will increase due to the inflation coefficient
Due to the introduction of a novelty in the form of an inflation coefficient the tax on real estate will also increase in the following years. At the same time, the legislation prevents the year-on-year reduction of the inflation coefficient. So, in case of deflation, the coefficient will remain the same. Furthermore, an inflation brake was established in case of strong inflation exceeding 20% year-on-year. The government will thus have the power to adjust the amount of the tax according to inflation every year. At the same time, representatives of the municipalities who determine the local coefficients will have more say in the amount of the tax. They can thus increase the property tax, but also reduce it by up to half from this year.
Source: https://www.podnikatel.cz/clanky/zaskocilo-vas-zvyseni-dane-z-nemovitosti-pripravte-se-na-dalsi-dan-poroste-neustale/
https://www.denik.cz/ekonomika/dan-z-nemovistosti-zvyseni-kveten-2024-castka-platba-doruceni.html
Preview photo: Pixabay
