Soon a postman will be knocking on your door with the decision of the municipal council on new local taxes for next year. The bad news is that in the case of real estate, many Poles will have to accept the highest tax increase in exactly 25 years. All, of course because of record high inflation.
It will also likely be showing in the rental prices on the Polish market in many months to come.
The maximum rates of local taxes are fixed. The municipalities are just adopting new budgets for next year, and with them they are setting the rates of local taxes and fees. They have until the end of the year to make a decision. Well, unless there is a “legitimate” reason they must delay a decision, then they can do so until December 31, 2023.
In August, after the Central Statistical Office announced inflation in the first half of 2022 (the amount of property taxes and fees depends on it), the Minister of Finance issued an announcement on maximum property taxes, and in October on means of transport for companies. The latter will increase by 5.44 percent, but as we wrote during the summer holidays, the maximum real estate tax rates will soar by as much as 11.8 percent. The Ministry of Finance granted such high increases to Poles for the last time in 1998.
Highest tax increases in a quarter of a century
The worst thing is that if the commune has not charged the maximum rates so far, and now decides to introduce them, the increases will be even more painful.
Remember that the chances of this happening are much higher than in recent years. Local governments are getting ready for a difficult crisis year with high energy prices and lower PIT revenues after the reform that the government gave them under the Polish Agreement, introducing a high tax-free amount and lower rates.
The decision on new local tax rates is usually sent by local governments to the residents at the turn of the year. The first payment is due on March 15, the second on May 15, the third on September 15, and the fourth on November 15. Of course, you can pay for the entire year in advance. If the commune does not send the decision by mid-March, the payment deadline is automatically extended to 14 days from the date of delivery of the document.
In the case of companies and institutions, payment terms are due on the 15th of each month.
The increase by 11.8 percent means that municipalities will be able to charge a maximum of PLN 0.16 for each metre of a building plot, and if it is used in business activities, it will be PLN 1.16 for a square metre, apartments will cost us PLN 0.1 more, a maximum of PLN 1, and for a garage by PLN 1.03 – PLN 9.71.
The highest allowable tax for an apartment with an area of 50 sq m. with a parking space will increase by PLN 26.10 to PLN 244.20 per year. But the tax on a 140-metre single-family house with a 1000-metre plot of land will increase by over PLN 85.
Property taxes will increase as well
- tax on land related to running a business, regardless of its classification in the land and building register, will increase from PLN 1.03 to PLN 1.16 by PLN 0.13
- land tax under stagnant surface waters or flowing surface waters of lakes and artificial reservoirs will increase from PLN 5.17 to PLN 5.79 by PLN 0.12
- the tax on other land, including land used for paid statutory public benefit activities by public benefit organisations will increase from PLN 0.54 from PLN 0.11 (an increase by PLN 0.07)
- undeveloped land covered by the revitalization area will increase from PLN 3.40 to PLN 3.81 by PLN 0.11
- the tax on residential buildings will increase from PLN 0.19 to PLN 1.0 (an increase by PLN 0.1)
- the tax on buildings related to running a business will increase from PLN 25.74 to PLN 28.78 by PLN 3.04
- the tax on buildings used for business activities in the field of trade in certified seed will increase from PLN 12.04 to PLN 13.47 by PLN 1.43
- the tax on buildings related to the provision of health services within the meaning of the provisions on medical activities will increase from PLN 5.25 to PLN 5.87 by PLN 0.12
- the tax on other buildings, including those for statutory public benefit activities, will increase from PLN 8.68 to PLN 9.71 by PLN 1.03
Maximum rates for means of transport
- tax on trucks with a maximum permissible weight of more than 3.5 tons to 5.5 tons will increase from PLN 912.48 in 2022 to PLN 1020.16 in 2023 (an increase of PLN 107.68)
- the tax on lorries with a maximum permissible weight of 5.5 tonnes to 9 tonnes inclusive will increase by PLN 179.63
- from PLN 1,522.21 to PLN 1,701.84 in 2023
- tax on a truck with a maximum permissible weight of over 9 tons – up to 12 tons will increase from PLN 1,826.64 to PLN 2,042.19 by PLN 215.55
- tax on a lorry with a maximum permissible weight equal to or greater than 12 tonnes will increase from PLN 3,485.69 to PLN 3,897.01 by PLN 411.32
- tax on tractor units or ballast tractors adapted for use with a semi-trailer or a trailer with a permissible total weight of a set of vehicles from 3.5 tonnes and less than 12 tonnes will increase from PLN 2,131.05 to PLN 2,382.52 by PLN 250.47
- tax on a tractor unit or a ballast tractor with a permissible total weight of a vehicle combination with a permissible total weight of a vehicle combination equal to or greater than 12 tons to 36 tons will increase from PLN 2,694.21 to PLN 3,012.13 by PLN 317.92
- tax on a tractor unit or a ballast tractor adapted for use together with a semi-trailer or a trailer with a permissible total weight of a set of vehicles over 36 tons will increase from PLN 3,485.69 to PLN 3,897.01 by PLN 411.32
- tax on trailers or semi-trailers which, together with the motor vehicle, have a permissible total weight of 7 tons and less than 12 tons, except for those related solely to agricultural activity conducted by the agricultural tax payer, will increase by PLN 1,826.64 to PLN 2,042.19 by 215.55 zloty
- tax on trailers and semi-trailers, which, together with the motor vehicle, have a permissible weight equal to or higher than 12 tons (excluding agricultural activity) to 36 tons will increase from PLN 2,131.05 to PLN 2,382.52 by PLN 251.47
- the tax on trailers and semi-trailers which, together with the motor vehicle, have a permissible total weight equal to or higher than 12 tonnes, except for those related solely to agricultural activities conducted by the taxpayer of agricultural tax above 36 tonnes, will increase from PLN 2,694.21 to PLN 3,012.13 by PLN 317.92
- the tax on a bus trailer with less than 30 seats will increase from PLN 2,156.92 to PLN 2,411.44 by PLN 254.52
- the tax on a bus trailer with the number of seats equal to or more than 30 seats will increase from PLN 2,726.93 to PLN 3,048.71 by PLN 321.78
Local fees increases
- the market fee will increase from PLN 852.75 to PLN 953.38 by PLN 100.63
- local abbot in towns with favourable climatic properties, landscape values will increase from PLN 2.50 to PLN 2.80 30 gr
- the local tax in towns with the status of a health resort protection area will increase from PLN 3.52 to PLN 3.94 by PLN 0.42
- the health resort tax will increase from PLN 4.83 to PLN 5.40 by PLN 0.17
- the dog tax will increase from PLN 135 to PLN 150.93 by PLN 15.93
- the advertising fee will increase from PLN 2.80 per day and PLN 0.25/sq m. daily up to PLN 3.14 per day and PLN 0.28 / sq m. per day (an increase of PLN 0.34 / sq m per day and PLN 0.3 / sq m per day).