Text file: 9815.txt
author: igor863
downvotes: 6
end consideration date: 2019-02-08
id: '9815'
number comments: 18
number views: 984
proposal type: Competent authority response
response: 'Response from the Ministry of Finance

  We note at the outset that it is not clear from the proposal which type of tax or
  levy is intended by the proponent, and we therefore set out below the Ministry of
  Finance''s general assessment of the (in)appropriateness of the proposal:

  In Slovenia, the taxation of immovable property is covered by three parallel systems
  of property taxation: the (immovable) property tax, the building land use tax (NUSZ)
  and the forest road maintenance fee. Each of these levies has its own rules as regards
  the scope of taxation, the tax base and the "rate" at which it is levied, as well
  as exemptions. The existing system of three separate levies is not adapted to the
  new economic situation and is not uniform, but any abolition of the taxation of
  houses or real estate, as proposed by the proponent, is not an appropriate solution
  in several respects.

  Taxes on the holding of immovable property represent one of the oldest tax revenues
  and are perfectly legitimate from the point of view of international comparability.
  They are in the nature of a kind of municipal levy, and when they are linked to
  the value of the real estate, they also contain an element of taxation of real estate
  as property. Real estate provides the owner with economic potential (to live or
  work), but it also provides him with greater security (as an investment), so its
  taxation is also justified from this point of view.

  In market-economy countries, the share of property taxes in the total tax revenue
  of a country, and in particular of local authorities, is usually one of the most
  important. In societies with a developed market economy and a strong socio-ecological
  component, the economic power and tax capacity of a certain segment of the population
  is reflected, inter alia, in the ownership of movable and immovable property. The
  principles of equity and solidarity dictate that the tax burden should also be distributed
  proportionately according to these indicators of wealth, within the framework of
  social consensus. This ensures that all segments of taxpayers contribute proportionately
  to social welfare. Moreover, taxation theory suggests that it makes sense to spread
  the tax burden among different tax sources, thereby achieving a more even distribution
  of the burden among taxpayers with different income and wealth structures.

  In Slovenia, the level of taxation of wealth is low. Recommendations have already
  been made by the OECD that Slovenia should improve the structure of its tax sources
  by introducing a property tax, which will ensure higher tax revenues for municipalities
  and create the possibility of a different financing regime for municipalities. In
  line with the recommendations of international organisations (OECD, IBRD, World
  Bank), Slovenia has been pursuing the introduction of a modern property tax for
  a number of years, following the example of modern solutions in many countries.'
response date: 2019-12-30
response due date: null
sent date: 2019-01-18
title: Abolition of the house tax
upvotes: 29
url: https://predlagam.vladi.si/predlog/9815
