Residents will be called to fill up the holes if municipalities fail to meet austerity budget targets. According to governmental legislative act clause of ‘divergence’ from fiscal targets, residents in municipalities with debts will dig deep in their pockets paying hikes in fees including those for properties. Municipalities will be under strict supervision through so-called “Independent Economic Watch”.
If municipalities fail to meet the targets at 10% and for the period of 6 months, municipality fees for street lights, garbage collection, cleaning etc will be automatically and mandatory will be raised.
A hike also in the municipality fee for properties (TAP) is being considered, according to Association of Property Owners (POMIDA). There are plans to skyrocket TAP fees with hikes to reach even up to 3 ‰.
Currently property owners pay 0.25-0.30 ‰ of objective value of the property. “Owner who have registered properties in indebted municipalities will be called to come up for bad budget management. For example, the owner of a property with 200,000 euro objective value will have to pay 600 euro fee per year, from 50-75 euro nowadays,” POMIDA said in a statement.
This measure will skyrocket the electricity bills for one more time as all municipality fees are collected through the bills of Public Power Company.
And it will, of course, drive crazy property owners who will have to pay 10 times more on municipality property fees than today, in addition to regular property taxes and emergency property taxes. Not ot mention the 10% tax on income from rentals independently from the owners’ annual income.
PS no matter how deep I look into my pocket, it is looking back with empty eyes. HA! I think we are out of control here…
My mother pays 8000 US dollars a year for property tax in California. So, 3% would be a bargain for her. But, unfortunately, once property tax starts, it never stops.
this is not a tax but additional tax (fee) paid to municipalities and in addition to the regular property tax and emergency property tax.