Local tax increases in 2016 again break ceiling
For the fifth year in a row many local councils will raise property taxes more than the maximum limit, with the highest increase expected in Brabant with a rise of 13 percent.
Every year the government sets a ceiling on local tax increases to prevent local authorities using the tax to build up their reserves. This year the government said next year’s tax should rise by no more than 1.57 percent.
However, the ceiling is advisory only and ‘does nothing to stimulate councils to keep taxes at a reasonable level’, the VEH said in a statement. ‘And there are no sanctions if councils break the limit, even if the rise is considerable.’
The Brabant local authority of Laarbeck is the biggest offender, with a rise of 13 percent, adding an average EUR 30 to home owners’ taxes, the VEH said. Weert and Amersfoort also have double digit rises booked in.
Onroerendezaakbelasting (property tax) is levied by local councils on all residential premises and is paid by the owners rather than users of a property. The amount is based on the value of the property and the money raised accounts for some 8 percent of local authority spending.