An entrepreneur asks the Town Hall: Why is it so expensive?

An entrepreneur asks the Town Hall: Why is it so expensive?
An entrepreneur asks the Town Hall: Why is it so expensive?
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This year, the real estate tax rate charged to entrepreneurs is PLN 24.45 per 1 sqm. surface. Next year it is to be 15 percent. bigger. The president announced that he wanted to raise it to PLN 28.21 per sq m. This will be the basis for calculating the tax on buildings related to running a business or parts of residential buildings occupied for this purpose. The tax on land related to running a business is also to increase: instead of PLN 1, you will have to pay PLN 1.14 per year.

– These are even Warsaw rates – says Tadeusz Szczepaniak, one of Lublin entrepreneurs, who is surprised that the Town Hall has not decided to diversify the rates of real estate tax.

– The act allows municipalities to differentiate rates according to the location, technical condition and age of the building, but Lublin does not. Regardless of whether the restaurant is in the backyard, in the basement or on the fifth floor, or on the ground floor of the promenade and sells vodka there, the tax rate is the same – notes Szczepaniak. – In my opinion, the differentiation of rates would give the city more budget revenues.

However, the Lublin authorities do not intend to introduce changes, but will only raise the rates.

– Lublin, like most local governments, does not differentiate tax rates, but a significant incentive for entrepreneurs are the tax exemptions we offer, especially in the period of development or job creation – says Joanna Stryczewska from the press office of the City Hall. He claims that the adopted system, in which the amount of tax depends on the size of the premises, is “transparent and simple”. – It also allows for equal treatment of entrepreneurs conducting the same type of activity.

The City Hall explains that he is forced to raise the tax due to his financial situation. – The city is forced to adjust the rates of some local fees and taxes as a result of changes in the tax system introduced by the government, which have drastically reduced the own revenues of local governments – argues Stryczewska. – For this reason, only this year, Lublin’s budget will receive about PLN 200 million less, and next PLN 300 million in the next one. Importantly, revenues from personal tax are one of the main sources of the city’s current income, from which current expenses are financed: running schools, nurseries and kindergartens, cleaning the city, public transport or maintaining the city’s infrastructure. This is an area where it is difficult to make savings without lowering the quality of services provided to residents.

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Residents will feel it too

The annual real estate tax rate charged for residential buildings is to increase from PLN 0.88 to PLN 1.0 next year. The “other land” rate applied in this case is to be increased from PLN 0.22 to PLN 0.11 per sqm. annually.

– A resident of Lublin who has, for example, a flat with an area of ​​60 sq m. with the associated land 45 sq m. will pay PLN 14.25 more in tax next year than in 2022 – informs the City Hall. – For a single-family house with an area of ​​150 sq m. with a garage of 25 sq m and a plot of 800 sq m. it will be PLN 131.75 more than in 2022.


The article is in Polish

Poland

Tags: entrepreneur asks Town Hall expensive

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