Text file: 5774.txt
author: Matej Pirc
downvotes: 8
end consideration date: 2014-05-01
id: '5774'
number comments: 14
number views: 1667
proposal type: Competent authority response
response: "Response from the Ministry of Finance\nThe taxation of motor vehicles is\
  \ regulated by the Motor Vehicle Tax Act (Official Journal of the Republic of Slovenia,\
  \ No 72/06 - official consolidated text, 9/10 and 40/12 - ZUJF; hereinafter: ZDMV).\
  \ According to the ZDMV, the motor vehicle tax is levied on private motor vehicles\
  \ (vehicles under tariff codes 8703 21, 8703 22, 8703 23, 8703 24, 8703 31, 8703\
  \ 32, 8703 33 and 8703 90 and under tariff code 8711) which are put into circulation\
  \ for the first time or registered for the first time in the territory of the Republic\
  \ of Slovenia. It is a kind of sales tax on new and second-hand vehicles which is\
  \ levied at the time of the first registration. The tax is based on the sale price.\
  \ The rates of the DMV are progressive (from 0.5% to 28% for petrol vehicles and\
  \ from 1% to 31% for diesel vehicles) and depend on several factors. For passenger\
  \ cars, the tax rate depends on the CO2 emissions from combined driving and the\
  \ type of fuel used for propulsion (petrol, LPG, diesel, hybrid, electric), and\
  \ in addition to the CO2 emissions, the EURO emission level (EURO 3, EURO 4, EURO\
  \ 5, etc.) and, for diesel vehicles, the level of particulate matter (less or more\
  \ than 0.005 g/km) must be taken into account in order to determine the correct\
  \ tax rate. For motor vehicles with at least eight seats, the tax rate is reduced\
  \ by 30%. The tax is therefore primarily aimed at encouraging the use of more environmentally\
  \ friendly vehicles with fewer unwanted emissions. Luxury and newer vehicles are\
  \ becoming more environmentally efficient due to the tightening of EURO standards,\
  \ so the tax rate on luxury vehicles does not necessarily need to be high. A higher\
  \ tax is levied on such vehicles because of their generally higher value.\nIt is\
  \ precisely because of the decreasing influence of the luxury of a vehicle on the\
  \ level of tax that, with the entry into force of the Act on Balancing Public Finances\
  \ (Official Journal of the Republic of Slovenia, No 40/12, 96/12 - ZPIZ-2, 104/12\
  \ - ZIPRS1314, 105/12, 25/13 - Decree-Law No 40/12, 96/12 - ZPIZ-2, 104/12 - ZIPRS1314,\
  \ 105/12, 25/13 - ZL. US, 46/13 - ZIPRS1314-A, 56/13 - Z\u0160tip-1, 63/13 - ZOsn-I,\
  \ 63/13 - ZJAKRS-A, 99/13 - ZUPJS-C, 99/13 - ZSVarPre-C, 101/13 - ZIPRS1415 and\
  \ 101/13 - ZDavNepr), an additional tax on motor vehicles (VAT) was introduced,\
  \ which depends on the engine capacity. It is also levied on first registration,\
  \ but only on passenger motor vehicles (including motorhomes) with a capacity of\
  \ 2,500 cc and above and on motorcycles, tricycles and quadricycles with a capacity\
  \ of more than 1,000 cc, i.e. motor vehicles that are usually more expensive, luxury\
  \ vehicles. VAT is payable on the same tax base as for the DMV. The rate of VAT\
  \ on motor vehicles falling within headings 8703 21, 8703 22, 8703 23, 8703 24,\
  \ 8703 31, 8703 32, 8703 33 and 8703 90, excluding tricycles and quadricycles, is\
  \ progressive and ranges from 8 % to 16 %. The rate of VAT on motorcycles (including\
  \ mopeds), motor-driven bicycles, tricycles and quadricycles is for all bicycles\
  \ with an engine capacity of more than 1 kg.The tax rate is also influenced by the\
  \ EURO emission standards (EURO 3, EURO 4, EURO 5...) and, for diesel-powered vehicles,\
  \ by the level of particulate matter (less or more than 0.005 g/km).\nNo real property\
  \ tax is paid on motor vehicles in Slovenia. However, this is partly due to the\
  \ annual road vehicle levy, which is determined by taking engine capacity into account,\
  \ thus placing a higher burden on more powerful vehicles, which are generally more\
  \ expensive and more luxurious.\nThe taxation of watercraft is governed by the Watercraft\
  \ Tax Act (Official Journal of the Republic of Slovenia, No 117/06 and 40/12 - ZUJF;\
  \ hereinafter: WTTA). It is by its nature a property tax. The vessel tax is payable\
  \ from:\n vessels of more than five metres in length which are entered in the registers\
  \ established on the basis of the laws governing navigation by sea and inland waterways,\
  \ except vessels under construction, vessels of more than five metres in length\
  \ whose owners are residents of the Republic of Slovenia and meet the technical\
  \ conditions for entry in the register of vessels referred to in the preceding indent,\
  \ but are not entered therein, and vessels of more than five metres in length whose\
  \ owners are residents of the Republic of Slovenia and meet the technical conditions\
  \ for entry in the register of vessels, but are not entered therein, because they\
  \ are registered abroad.\nThe tax liability for a calendar year is determined according\
  \ to the length of the vessel and the propulsion power, which are essential indicators\
  \ (in particular the length of the vessel) for determining the value or luxury of\
  \ the vessels. In 2012, the ZUJF introduced an additional tax on watercraft, which\
  \ is levied in the same way and on the same bases as provided for in the ZDVP, but\
  \ the rates of the additional tax are newly set in a more progressive manner,\n\
  As can be seen from the above, the current legislation already regulates the taxation\
  \ of so-called luxury movables in such a way that they are taxed progressively or\
  \ at a higher rate than other movables.\nAs regards the taxation of real estate,\
  \ we would like to clarify that on 28.3.2014 the Constitutional Court of the Republic\
  \ of Slovenia completely repealed the Law on Real Estate Tax (ZDavNepr), which entered\
  \ into force last year. At the same time, the Constitutional Court of the Republic\
  \ of Slovenia ruled that:\n until a different legal regulation of property taxation\
  \ is adopted, the provisions of the regulations repealed by ZDavNepr (certain provisions\
  \ of the Law on Citizens' Taxes, the Law on Construction of Buildings, the Law on\
  \ Building Land and the Law on Forests) continue to apply and, in order to provide\
  \ municipalities with funds in 2014, a building land use compensation, a fee for\
  \ the maintenance of forest roads and a property tax are levied.\nIn the light of\
  \ the Constitutional Court's decision, the provisions of the Law on Building Land\
  \ and the Law on Construction of Buildings, which regulate compensation for the\
  \ use of building land, are thus applicable again. The determination of the areas\
  \ for which compensation was payable, the determination of the immovable property\
  \ for which compensation was levied, the determination of the persons liable for\
  \ payment of compensation and the amount of compensation are the exclusive competence\
  \ of the municipalities. According to the rules, compensation is payable for built-up\
  \ land according to the surface area of the building and for unbuilt-up land according\
  \ to the surface area of the land, and the persons liable for the compensation are\
  \ the direct users. The amount of the compensation is determined on the basis of\
  \ criteria to be laid down by each municipality and is not linked to the value of\
  \ the property.\nThe levy acts as a municipal charge to provide municipalities with\
  \ revenue for the provision of public infrastructure and is therefore, in principle,\
  \ payable on all immovable property within an area defined by the municipality,\
  \ which has a high degree of autonomy in determining the objects of taxation. However,\
  \ in accordance with the provisions of the law, the levy is not payable on land\
  \ used for the purposes of national defence, on buildings of foreign countries used\
  \ by foreign diplomatic and consular missions or occupied by their staff, on buildings\
  \ of international and intergovernmental organisations used by those organisations\
  \ or occupied by their staff, unless otherwise provided for in an international\
  \ agreement, and on buildings used by religious communities for their religious\
  \ activities. A citizen who has purchased a new dwelling as an individual part of\
  \ a building or has built, added to or extended a family dwelling house is exempt\
  \ from the compensation for a period of 5 years at his own request, provided that\
  \ the price of the dwelling or dwelling house or the direct costs of the improvement\
  \ of the building plot are included in the price of the dwelling or dwelling house.\n\
  In addition to the building land use allowance, the property tax on the property\
  \ it regulates will also be reinstated following the US ruling. Law on Citizens'\
  \ Taxes (Official Gazette of the SRS, No 36/88, 8/89, 48/90, 8/91, 14/92 - ZOMZO,\
  \ 7/93, 18/96 - ZDAVP, 91/98 - ZDAVP-C, 1/99 - ZNIDC, 117/06 - ZDVP, 117/06 - ZDDD,\
  \ 24/08 - ZDDKIS and 101/13 - ZDavNepr). The latter provides that the taxable persons\
  \ are natural persons (owners or occupiers) who own buildings, parts of buildings,\
  \ dwellings and garages, as well as rest or recreational premises. The basis for\
  \ property tax is the value of the building or rest or recreation area, determined\
  \ according to the criteria of the Republican administrative authority responsible\
  \ for housing and in the manner laid down by the municipal assembly. The property\
  \ tax base on the possession of buildings shall be reduced by an amount equivalent\
  \ to the value of 160 m2 of living space. No property tax shall be payable on the\
  \ possession of buildings:\n on agricultural outbuildings; on business premises\
  \ used by the owner or occupier for the pursuit of his business; on dwellings of\
  \ persons liable to the agricultural tax who are themselves or members of their\
  \ families insured for a pension or invalidity allowance on the basis of their agricultural\
  \ income; on buildings declared a cultural or historical monument; on buildings\
  \ which cannot be used for objective reasons.\nFirst-time owners of new dwellings\
  \ or flats and garages are temporarily (for a period of 10 years) exempted from\
  \ property tax. The first owner is also considered to be the one who inherits such\
  \ a building, but only to the extent of the rights that the first owner had. Exemption\
  \ shall also be granted in respect of repaired and renovated dwelling-houses or\
  \ flats and garages if, as a result of the repairs or renovation, the value of the\
  \ dwelling-house or flat or garage has increased by more than 50 %.\nThe property\
  \ tax therefore has all the elements of a property tax, including a comprehensive\
  \ exemption for residential property intended for the residence of the owner or\
  \ his/her immediate family. The tax rates are progressive according to the size\
  \ of the tax base (value) and range from 0.1% to 1.5%. Under this system, more luxurious\
  \ properties (both in terms of location and value, and whether they are second,\
  \ third and subsequent properties owned by the same person) are therefore taxed\
  \ more heavily. This tax is not levied on immovable property owned by legal persons,\
  \ but also on immovable property owned by public entities.\nAs a temporary measure,\
  \ the ZUJF also introduced a tax on immovable property of higher value, which was\
  \ repealed by the ZDavNepr. The subject of the tax was immovable property in the\
  \ territory of the Republic of Slovenia belonging to the same owner, where its total\
  \ value is at least EUR 500,000. The taxable person was the owner of the immovable\
  \ property, except for residential property under finance lease, who was the lessee.\
  \ The generalised market value of the immovable property, as attributed to the property\
  \ in the immovable property register, was used as the basis for determining the\
  \ taxable amount. Commercial, industrial and public purpose immovable property was\
  \ exempt from tax The taxable person was the person who was registered as the owner\
  \ or the operator of the immovable property in the real estate register on the cut-off\
  \ date. The tax was levied on:\n for a taxable amount between EUR 500 000 and EUR\
  \ 2 000 000 inclusive, at a rate of 0,5 % for all immovable property, except residential\
  \ immovable property, for which the tax rate is 0,25 %; for a taxable amount above\
  \ EUR 2 000 000, at a rate of 1,0 % for all immovable property, except residential\
  \ immovable property, for which the tax rate is 0,5 %.\nIt follows from all the\
  \ above that there are already levies in Slovenia which provide for higher taxation\
  \ for luxury taxable items. However, in view of the abovementioned repeal of the\
  \ ZDavNepr, we would like to thank you for your suggestions for improving the system\
  \ of taxation of immovable property at this point in time, and we will review them\
  \ in more detail, as well as all the other suggestions received, in the context\
  \ of a possible re-regulation of the area of taxation of immovable property.\n "
response date: 2014-06-04
response due date: null
sent date: 2014-04-02
title: What kind of tax do we need
upvotes: 13
url: https://predlagam.vladi.si/predlog/5774
