Interview: From January, property tax rates go up sharply
Taxpayers must reckon with the fact that from 2024, the maximum property tax rates will increase by as much as 15 per cent. This is the second year in a row when increases in this area exceeded 10 per cent. This is the effect of persistently high inflation - says Michał Nawrot, a consultant at Thedy & Partners, in an interview with the portal Forum Polskiej Gospodarki.
From 1 January next year, taxpayers will face another increase in the maximum rates of local taxes and charges. What is the reason for it and what scale is it referring to?
Simply put, the law links the maximum tax rates to inflation. Therefore, in times of high inflation, one of the highest increases in many years is not surprising. In the case of 2024, we are talking about a 15% increase on the current maximum rates. To put next year’s increase into context, it is worth pointing out that, although the maximum rate increased by 11.8 per cent last year, the increase was only 3.6 per cent the year before. Increases of no more than 4 per cent have been the norm in previous years. For this reason, the years 2023 and 2024 will be particularly hard on taxpayers in terms of increases. The last time we saw similar levels of increases was at the end of the 20th century.
Can we illustrate this increase with a concrete example: let’s assume that a company owns 3 warehouse halls, each with 1000 square metres. For simplicity of calculation, let’s assume that in each hall these 1000 metres are subject to property tax (there are no exclusions or exemptions). What tax does the company pay today and what tax will it pay from next year?
The amount of tax payable on a warehouse hall is determined by multiplying the area of that warehouse, expressed in square metres, by the tax rate adopted by the municipal council and applicable to buildings associated with the conduct of business activities. Currently, the maximum rate for this category of buildings is PLN 28.78, but in the following year, it will already be PLN 33.10. In practice, in the example we have adopted, this means that the amount of tax due will increase from PLN 28,780 to PLN 33,100 – i.e. PLN 4320. This would therefore be, as we said, a 15% increase in the burden.
The entire interview can be read at this link: Już od stycznia stawki podatku od nieruchomości ostro w górę [WYWIAD] – Forum Polskiej Gospodarki (fpg24.pl)