The city of Hradec Králové wants to keep taxes on residential property at the current level and is therefore preparing to reduce some local coefficients for calculating them. If the city does not do so, people would pay significantly higher taxes on residential buildings from 2025, as the state will increase the coefficient determined by the size of the municipality to more than double, said Miroslav Hloušek (ODS), Deputy Mayor yesterday.
Already this year, property taxes have increased by an average of 1.8 times according to the adopted government consolidation package. If the City Hall did not reduce the local coefficients, taxes on owners of residential buildings would rise further from 2025. The draft local property tax ordinance has been reviewed by the city council and is expected to be finally approved by councillors at their June 18 meeting.
Property tax is a municipal revenue. This year, Hradec Králové should collect about CZK 338 million from the property tax after last year’s CZK 186 million. If the councillors approve the adjustment of the coefficients, the real estate tax revenue for the municipal treasury should amount to about CZK 335 million in 2025.
For buildings intended for housing, the state coefficient in Hradec Králové in 2025 will increase from two to 4.5 in the centre and from 1.6 to 3.5 in the outskirts. The existing local coefficient given by the city is at three in both cases and the city council has proposed to reduce it to 1.3. For building lots, the tax will not change from this year, but for recreational and business buildings and garages, the tax amount will also remain.
The city began drafting the new property tax ordinance in the spring of this year, when it became clear that the tax rates would increase by 80 percent for this year. “This is just a new version of the ordinance that we are trying to ensure our citizens that the real estate tax that is in effect this year will not increase any more,” Hloušek said.
Source: Hradec Králové and CTK
