The National Assembly, in a first reading adopted a change in Local Taxes and Fees Act (LTFA), aimed at bringing a relief to tax obliged persons for local tax, in the case of a change in circumstances, relevant to the determination of the property tax.
Currently, one of the provisions in the law provides that when there is a redevelopment, a change in the purpose of an existing building or an independent object in a building, or a change in another circumstance that is important for determining the tax on the property, the tax obliged persons should notify the municipality of this circumstance within 2 months.
It is planned to create a new provision in LTFA, which will determine that when a declaration is not submitted within the 2-month period, and the change in circumstances refers to data, contained in the information systems of the cadaster and the property register, or affects data available in the municipality system, the employees of the relevant municipal administration must reflect the change ex officio, for which they must notify the taxable person within 14 days.
Such proposal is reasonable, insofar as, in fact, part of the information relevant to the determination of the amount of the local tax (the information about the refusal of the right to use the property/expiration of the established right of use, redevelopment, sale of part of the property), is accessible and available to the municipal administration employees. In this sense, it would be easier in such cases for the change in the circumstances to be carried out ex officio and thus the taxpayers would be relieved.
Our team will monitor the acceptance of the amendment in the LTFA and the final text accepted and will inform you in a timely manner.