Taxes on houses, apartments, and land could increase from 2027, with the application of the new estimated values of real estate. The changes also provide for the obligation of local public authorities to establish the exact rates of the tax annually, and in the absence of a decision, the minimum rate provided by law should be applied, IPN reports.
The changes are found in the amendments to the bill regarding the simplification of tax and customs legislation, approved by the Government.
The State Secretary of the Ministry of Finance, Corina Alexa, explained that the changes aim to provide more predictability to citizens and to ensure that local authorities fulfill their obligation to adopt annual decisions on property tax rates.
“In the event that the authorities do not adopt a decision on the specific rate of the property tax, then they will have the obligation to apply the minimum rate, of 0.05% of the property value,” declared Corina Alexa.
According to the amendments, if the local deliberative authority does not adopt the decision within the timeframe provided by law, or if this is annulled by a definitive judicial decision, in the following fiscal year the minimum rates of property tax will be applied.
At the same time, the estimated values of the immovable assets, established following the general assessment and reassessment works for taxation purposes, are expected to be applied from January 1, 2027. Simultaneously, the taxation system based on the estimated value is expected to be applied to agricultural lands without buildings, as well as apartments, individual houses, and the lands pertaining to them in rural localities.
The application of the new estimated values could lead to a change in the tax paid by property owners, however the notice does not indicate a uniform increase for all real estate nor the amount by which the tax could increase. The payment value will depend on the taxable base and the specific rate set by the local authority.
The government does not support a proposal through which local authorities could set quotas without considering the minimum threshold provided by the Fiscal Code. The executive argues that maintaining the minimum quota is necessary to ensure predictable own revenues for local budgets and to avoid too large differences in the tax burden between localities.
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