Comment: Property tax changes help some, help others – List of News

From 2025, the range of deductible property tax will see, at first glance, unclear changes taken within the framework of the property known as the consolidation package. Townships will no longer be able to set higher property tax coefficients for specific properties with binding ordinances in general, but must do so as a general measure. They must be received for the following tax period by the end of June in the previous year.

The practical result of this change is that municipalities, which until now used higher coefficients for buildings specifically designated (for example, for a specific business area in the city) are by order and not time have to take general measures with the order. end of June 2024, the property tax will not increase for this property. For some cities, this can mean a significant loss of revenue, and for property owners, on the other hand, it can be a huge relief.

At the outset, it is worth mentioning that individual cities can increase (and possibly also decrease) the tax on immovable property in the range of coefficients from 0.5 to 5.0 . This coefficient is then multiplied by the transferable property tax base calculated according to the type of property, its area and the built-up part of its area and possibly other parameters. Simply put, the city can greatly influence the amount of property tax with the coefficient.

For example, in the case of a smaller hall with an area of ​​3,500 m2 with a plot of approximately 14,000 m2, where the basic annual property tax can be around CZK 320,000, the municipality can increase the tax by a factor of 5 with CZK. 1,280,000 per year to a total of CZK 1,600,000 per year.

A smaller coefficient for tax on immovable properties, within the framework of housing support in the city, can concern, for example, apartments and family houses, while an increase in the coefficient will have an effect as most often on industrial areas and other areas of the same type of land and buildings, also because of their greater impact on life in the city, ie for example by justifying higher emissions such as noise, smell and others.

Until now, the coefficient could only be increased by city ordinances, both for the whole of the city and for its parts, for a specific group of immovable property (such as industrial buildings ), or even for individual immovable property. Now, however, it will be possible to set a different coefficient for individual immobile materials only through general measures.

At a time when there is more pressure on the cost side of industrial production, it can be at least a temporary relief for companies that have been affected by the tax increase so far, if the city has not succeeded in taking measures according to the new regulation in an hour. For the 2025 tax period, the municipalities had to send general measures already issued to the financial administration by June 30, 2024, and apparently many municipalities did not have time to do it.

However, the change could provide relief to property taxpayers not only for the following tax period, but also for the future. The previous procedure for determining the increase in the coefficient for individual buildings was simpler for cities, and the taxpayer could only oppose the adoption to that order to a limited extent.

On the other hand, the process of adopting general measures is more challenging for the city. The city must first post the draft measure on the official city board for 15 days. The law then provides the opportunity for protection directly within the process of adopting this measure, especially in the form of complaints within a period of 30 days and in the form of comments. The municipality must then make a decision on the objections, take them into account when determining the amount of the coefficient and, in the general step itself, explain why the objections were not met. In this way, it is possible to influence the very process of taking measures that would increase the coefficient, for example in situations where the city would act differently in terms of buildings with similar negative effects to the surrounding area. Complaints can then put pressure on the city to consider whether the tax increase for a particular building is really reasonable and defensible, which will force the city to reconsider the increase of the coefficient.

However, if the city nevertheless implements a measurement wording of a general nature that increases the property tax coefficient without justifying sufficiently or correctly why it did not take into account complaints the property owner, the measure can be challenged within a year also in court. , which must decide within 90 days whether the measure is suspended or remains in effect. It is therefore possible to protect against measures that have already been issued. The question is then whether it will be possible after a longer period to challenge previously issued measures that would have become outdated in the meantime – for example, because the company concerned with measures that significantly reduce the negative externalities with the city. justify an increase in coefficient.

It is therefore also up to the municipalities if they use this opportunity to communicate with property owners and businessmen and thus encourage them to reduce the impact of their activities on the environment. Ultimately, therefore, it could be a tool for nurturing existing work. Owners, especially industrial halls and buildings and similar industrial buildings, can be recommended in most cases to monitor the official boards of the cities where the building is located, and participate actively in the process of take steps.