Text file: 9186.txt
author: gepard tiger
downvotes: 14
end consideration date: 2018-05-30
id: '9186'
number comments: 21
number views: 2711
proposal type: Competent authority response
response: "Response from the Ministry of Finance\nOn the basis of the regulations\
  \ that were restored to use by the decision of the Constitutional Court of the Republic\
  \ of Slovenia, No U-I-313/13-86 of 21 March 2014, which repealed the Law on Real\
  \ Estate Tax, the taxation of the possession of immovable property in Slovenia comprises\
  \ a tax on the property of natural persons, and there are two other levies that\
  \ are intended to act as a tax on immovable property or to complement the existing\
  \ tax system. These are the compensation for the use of building land and the fee\
  \ for the maintenance of forest roads.\nThe property tax in the Republic of Slovenia\
  \ is levied on immovable property of natural persons. Property tax is payable by\
  \ natural persons who own buildings, parts of buildings, dwellings and garages,\
  \ and rest or recreational premises. The tax is payable by the owners or occupiers\
  \ of the property, whether they use it themselves or rent it out. The basis for\
  \ the property tax is the value of the building or rest and recreation area. The\
  \ value is determined on the basis of criteria laid down by the administrative authority\
  \ responsible for housing and in the manner laid down by the municipality. The property\
  \ tax system gives the taxpayer a substantial relief, namely a reduction in the\
  \ tax base corresponding to the value of 160 m\xB2 of living space, determined on\
  \ the basis of a tax base calculation, provided that the owner or members of his\
  \ family permanently reside in the residential premises in the year preceding the\
  \ year in respect of which the tax is levied. The reduction does not apply to rest\
  \ or recreation premises. The property tax on the possession of buildings is not\
  \ payable on agricultural outbuildings, on business premises used by the owner or\
  \ occupier for the pursuit of a trade, on residential buildings of agricultural\
  \ taxpayers who are themselves or their family members insured for retirement and\
  \ invalidity benefits on the basis of their agricultural income, on buildings declared\
  \ to be a cultural or historical monument and on buildings which cannot be used\
  \ for objective reasons. First-time owners of new dwelling houses or flats and garages\
  \ and owners of repaired and renovated dwelling houses or flats and garages are\
  \ also temporarily (for 10 years) exempted from property tax if the repair or renovation\
  \ has increased the value of these buildings by more than 50 %. The exemption does\
  \ not apply to rest or recreation rooms, nor to business premises, even if they\
  \ are an integral part of a residential building. The law also provides for a special\
  \ relief for large families, whereby a taxpayer with more than 3 family members\
  \ living with him in his own dwelling house or apartment has the tax assessed reduced\
  \ by 10% for the fourth and each additional family member. The tax rates are progressive\
  \ and vary according to the purpose of use. For residential buildings, the tax rate\
  \ ranges from 0.10% to 1%, depending on their value, for leisure and recreational\
  \ premises the rate ranges from 0.20% to 1.50%, while for business premises the\
  \ tax rate is set at 0.15% to 1.25%. For business premises not used for business\
  \ purposes and not rented out, the tax rate is increased by 50%.\nThe building-use\
  \ tax is payable on building land in towns and urban settlements, in areas designated\
  \ for housing and other complex construction, in areas for which a spatial implementation\
  \ plan has been adopted and in other areas equipped with water and electricity supply.\
  \ The areas for which compensation is payable and the amount of the compensation\
  \ shall be determined by the municipality. The undeveloped building land use charge\
  \ is payable on the area of undeveloped building land designated for construction\
  \ under the spatial implementation plan or for which the competent authority has\
  \ issued a location permit. However, the fee for the use of built-up building land\
  \ shall be paid on the residential or commercial area of the building. No land use\
  \ tax shall be 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 such 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. Exemption or partial exemption shall also apply to low-income\
  \ citizens or citizens who have invested social resources in the construction of\
  \ communal facilities in an organised manner, if so provided by the municipality.\
  \ The person liable to pay the compensation is the direct user of the land or building\
  \ or part of a building (holder of the right of disposal or owner, tenant of the\
  \ dwelling or business premises, holder of the right of occupancy).\nThe forest\
  \ road maintenance charge is a direct earmarked revenue from the local budget to\
  \ cover the costs of maintaining forest roads as part of the municipal road infrastructure.\
  \ It is paid by forest owners in areas open to forest roads according to the Forest\
  \ Service. The obliged persons are natural and legal persons who are registered\
  \ as owners in the land cadastre, i.e. formal holders of the right of disposal over\
  \ the land. The fee is based on the cadastral income of the land and the rate is\
  \ 9,4 % of the base, except for the Fund of Agricultural Land and Forests of the\
  \ Republic of Slovenia, for which the rate is higher, 12,8 %, and is also levied\
  \ on the cadastral income.\nToday, therefore, so-called first residential properties\
  \ are treated differently for the purposes of the various levies. For the purposes\
  \ of property tax, they are exempted from taxation, while for the purposes of building\
  \ land use allowance, they are fully taxed, irrespective of the purpose for which\
  \ the dwelling is used and irrespective of whether it is a first or second or subsequent\
  \ property.\nWith regard to your proposal, we would like to clarify that, at this\
  \ stage, the only position adopted for the future property tax is the Government's\
  \ starting point, which, in relation to the scope of taxation, provides for the\
  \ coverage of all immovable property, except where it is appropriate to provide\
  \ for exemptions (broad tax base) in specifically justified and very narrowly defined\
  \ cases. The same starting point was also endorsed by the Project Council for the\
  \ Coordination and Guidance of the Project for the Preparation of a New Systemic\
  \ Arrangement of Property Taxation, which was set up by the Government in February\
  \ 2015. Accordingly, only a selective set of internationally comparable exemptions\
  \ of this type will be included in the exemption. The Ministry of Finance will continue\
  \ to work on the preparation of the new property tax in the light of the orientations\
  \ of the incoming government, but we are not in a position to give you further details\
  \ at this point in time, for the reason mentioned above.\n "
response date: 2018-07-02
response due date: null
sent date: 2018-05-09
title: Property tax.
upvotes: 17
url: https://predlagam.vladi.si/predlog/9186
