Tax revenues to municipal budgets
In 2023, as before, local budgets will be mainly replenished by four fees: property tax, garbage collection fee, sewerage fee and parking tax (more - in our article on municipal taxes). Together, they will account for 86% of tax revenue.
The Research Institute of the University of Groningen, COELO, produces an annual Atlas of Local Taxes and Fees, which can be viewed interactively online. There is also local taxes and fees calculator, with which you can calculate the fees in a certain municipality and compare them with fees in another.
Increasing housing costs for owners and tenants
Taxes and fees on housing will increase this year by almost 5% for owners and more than 3% for renters. The owner of the house will pay the municipality an average of 944 euros this year, the tenant - 436 euros.
Real estate tax (onroerendezaakbelasting, OZB)
The basis for calculating OZB in 2023 is the value of real estate at Woz-waarde for 2022. And it is on average 17% higher than a year earlier. Municipalities to balance the situation are reducing their property tax rates: as a result, the rate will be only 6% higher than last year. Dutch families will pay an average of 25 euros more property tax this year.
Fees for sewerage (rioolheffing) and for waste collection (afvalstoffenheffing)
Local budgets are going to receive 2,4 billion euros in waste collection fees and almost 2 billion euros in sewerage fees. On average, the garbage collection fee for households will increase by more than 12 euros this year. The sewerage fee will be 7,35 euros, which is 3,6% more than in 2022. For companies, the increase varies from 4 to 6,4%.
Parking tax (parkeerbelasting)
The parking tax is levied in 143 municipalities and can be included in the price of a parking ticket or regular parking permit. It is expected that in 2023 local budget revenues from this fee will amount to 1,2 billion euros, which is 7% more than last year. The rate for parking on a public road in the center of the municipality has increased by an average of 7,4% within an hour, that is, on average, it will be 3,77 euros.
Tourist tax (toeristentaks)
Like last year, this tax will be collected by 89% of municipalities. On average, this tax is plus 3,27 euros to the cost per night at the hotel. The estimated income from tourism tax this year is 429 million euros, which is almost 25% more than in 2022. At the same time, tourists will pay on average almost 12% more than in 2022.
Tax for the use of municipal land (precariobelasting)
This tax is levied on individuals and companies for placing objects under, on or above municipal land (terraces, shop windows, sheds, billboards, underground or above ground pipes, cables, tanks). Precariobelasting is expected to generate €40 million this year, up 2,6% on last year.
Dog tax (hondenbelasting)
This tax is paid by dog owners. However, according to hondenbelasting, the only decrease in local budget revenues in 2023 is observed: these revenues decreased to 39 million euros (18,4% less than last year). At least 17% of municipalities that still had a dog tax in 2022 have abolished it this year. However, in 136 municipalities, dog owners still pay an average of 80 euros to the municipality, up 2,5% on last year.
Fees
Revenues from fees for issuing identity cards and driving licenses are foreseen in local budgets at the level of 215 million euros. This is slightly less than in 2022. Fees increase by an average of about 2,5 euros per service. An extract from BRP has risen in price by an average of 61 cents. Revenues from construction and other permits will rise by 1,2% to 612 million euros.
So, revenues to local budgets are increasing in all respects, except for the tax on dogs. However, does this compensate for inflationary losses? We will follow together.
Publication Date: 04.05.2023
