The land is gone, but the tax is paid
Landowners of land expropriated for road construction pay a tribute on land that is no longer in their hands, writes Rzeczpospolita.
Michal Nielepkowicz, tax advisor and partner at Thedy & Partners was asked by the editorial to comment. He pointed out that in a situation where the provincial governor issues a decision providing for the seizure of real estate for the purposes of road investments, pipelines or, for example, for a power line, its current owner does not cease to be the owner. This is the case even if the decision is not final despite the order of immediate enforceability. However, it is then the State Treasury or another investor who becomes the sole owner of that land. In such a situation, the provision of Article 3(3) of the Local Taxes and Fees Act can be used, which provides that it is the sole holder who is obliged to pay the property tax. In practice, the owners of such properties should ideally communicate in advance with the investor and with the municipal authorities so that this issue is clearly established. Besides, such an investor is usually keen to carry out investments quickly and to minimise disputes around land for such investments, so it may be in his interest to take over the tax obligation.
The entire article can be read in Rzeczpospolita of 24 August 2023, page A12