Daily Reports
Property Tax Increases in Major Cities
Taxpayers now have clarity on the local property tax rates they will be encountering for the year 2024. Communities had until April 15 to communicate the property tax rates for the upcoming year to the tax authorities. According to FSL, a firm specializing in financial information for local authorities, most cities have chosen to maintain the current rates; however, six major cities with populations exceeding 100,000 have opted for increased rates. Notably, Nice in the Alpes-Maritimes region saw the highest increase at 19.2%, followed by Saint-Priest at 16.3%, Saint-Étienne at 15%, Nancy at 14.5%, and Annecy at 14.10%, representing a substantial hike resulting in additional tens of euros annually for the property owners.
In municipalities with populations ranging from 40,000 to 100,000, only 9% opted for an increase. Despite these changes, all property owners will face a minimum increase of 3.9% in their property tax bills due to the rise in rental base amounts, indexed to the harmonized consumer price index (HICP). This increase is one of the five highest in the past four decades, albeit lower than the historic 7.1% rise seen in 2023.
Broader Taxation Adjustments
In the small community of Gaißach, a return to 'normal' budget levels marks a significant change following three record-setting years driven by expansive projects such as kindergarten expansion and a new double gym construction. Mayor Stefan Fadinger emphasizes prudent financial planning moving forward, focusing on mandatory tasks to ensure long-term prosperity.
Gaißach’s administrative budget has reached a record high, stemming largely from increased income tax and trade tax revenues reflecting the thriving local economy. Concurrently, expenses have surged, particularly in district levies and personnel costs. Responding to this fiscal environment, an increase in assessment rates for property and trade tax is deemed essential to balance future financial responsibilities. The last adjustment to these rates was in 2016, and the new measures are predicted to generate additional annual revenue of approximately 300,000 euros, enabling the municipality to continue supporting local non-profit organizations and projects sustainably.
- Despite some municipalities choosing to reduce their property tax rates, the overall tax burden remains significant due to the increased rental base amounts. The FSL firm's calculations reveal that even slight municipal-level reductions are often negated by increases at metropolitan levels.
- In contrast, Gaißach's balanced budget without incurring additional debt showcases a more conservative fiscal approach. With significant investments planned for 2024, all financed from existing resources, the municipality presents a model of prudent financial management. Key investments include the conversion of the building yard, remaining kindergarten funding, and road construction projects among others. The municipality’s decision to raise assessment rates is a proactive measure to ensure a stable financial future amidst rising costs and mandatory financial obligations.
