More money for towns and cities, more opportunities for their development.
The approved draft amendment to Act No. 447/2015 Coll. on the Local Development Fee (hereinafter referred to as “the Act”) mainly concerns the changed range of the local development fee (hereinafter referred to as “the fee”) and extends the options available for municipalities to use the revenue therefrom.
Maximum charged fee has increased
The maximum charged fee was increased in line with the changing prices of construction works and construction materials related to the higher inflation rate.
The fee range has changed from the original EUR 3 to EUR 35 to EUR 5 to EUR 50 for each started square metre of the floor area of the part of the building located above the ground.
Municipalities have been given the option to reduce the fee for industrial buildings and warehouses, administration buildings in industrial parks included.
Extended justifiable expenditures
The definition of justifiable expenditures which can be financed from increased revenues that towns and cities obtain from the development fee was extended based on practical requirements.
These funds can now also be used to co-finance investment activities.
This change gives municipalities more flexibility in the planning and implementation of projects that improve the quality of life in their regions.
Inflation coefficient has been introduced
At the same time, an inflation coefficient was incorporated in the Act. It is applied to the calculated fee to include consumer price inflation in subsequent years.
The inflation coefficient for the relevant tax period will be published by the Ministry of Finance of the Slovak Republic (SR) in the Financial Bulletin based on data provided by the Statistical Office.
Fee reimbursement
The draft substantially amended the procedure to have the fee, or a pro rata part thereof, reimbursed.
The updated wording of the Act also allows taxpayer’s investment in public infrastructure, utilities and facilities of public interest to be offset against any of the purposes listed below in the Act.
