Yesterday, a draft amendment act was published on the website of the Government Legislation Centre, introducing new rules for taxation of real estate tax, among others, of structures or underground garages in residential buildings.
Structures
It is proposed that the concept of “structure” should include:
1. Facilities listed in the appendix to the Act, as well as installations and equipment, if they constitute a technical and functional whole together with this facility.
The attachment lists, among others:
- tanks in the form of a silo, elevator, bunker, tanks intended for the collection of loose materials, occurring in pieces, or in liquid or gaseous form, whose basic technical parameter determining economic functions is capacity;
- containers permanently attached to the ground;
- tents.
The reference to the technical and utility whole means that these facilities will be taxed together with installations and equipment that are necessary to achieve a common economic goal.
2. Construction parts of equipment that are not part of the structure referred to in point 1.
3. Construction parts of wind power plants and nuclear power plants.
4. Foundations for machinery and equipment, technically separate from these machines and equipment.
5. Connections to the building.
An important change: the above structures will be structures if they were made with the use of construction products (and not erected from construction products as at present).
Building
According to the new definition, a “building” is a structure, together with installations ensuring the possibility of its use in accordance with its intended purpose, made with the use of construction products, which is permanently attached to the ground, separated from the space by means of building partitions and has foundations and a roof, but a rule is added here that parts of specific structures that meet the definition of a building will also be considered a building (applies to sewage treatment plants, sports facilities or water treatment plants).
Other
As we informed, a multi-car garage in a residential building will be considered a residential part of the building and taxed as such.
Exclusion of the application of the real estate tax exemption for railway infrastructure in the scope of land, buildings and structures included in the freight terminal.
Changes in the scope of real estate tax exemptions for land, buildings and structures in the area of parts of public airports.
Change in the scope of real estate tax exemption for research institutes.
The changes are to enter into force generally from 1 January 2025,
We recommend verifying the situation of taxpayers in terms of the new regulations.
