Property tax limit left to municipality

5th June 2007, Comments 0 comments

5 June 2007, HILVERSUM – Starting next year municipalities will be able to set their own limit on property tax (OZB tax). The cabinet says this fits in with the policy to allow municipalities to determine their own priorities.

5 June 2007

HILVERSUM – Starting next year municipalities will be able to set their own limit on property tax (OZB tax). The cabinet says this fits in with the policy to allow municipalities to determine their own priorities.

Minister for Home Affairs Guusje ter Horst and State secretary Ank Bijleveld came to this agreement with the Association of Netherlands Municipalities (VNG) on Monday.

The Homeowners Association (VEH) is astonished at the agreement to get rid of the national limit on property tax and is considering taking the matter to court, it said on Radio 1 news this morning.

A regulation has been in place since last year which stipulates that the property tax may not increase by more than 2.75 percent each year. Now that the limit is being scrapped, the Homeowners Association fears that many municipalities will raise property tax by 20 to 40 percent.

The VEH is considering legal action. The association says a recent court ruling regarding sewage charges sets a precedent that could help their case.

The court ruled in that case that it was unreasonable to base sewage charges on the value of the house. Lawyers are looking into whether this decision can be invoked to prevent the agreement reached on Monday from coming into effect.

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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