In today's "Tax This and That", we continue our review of tax changes in 2024.

Agricultural tax

1. Donate 1.5% of your tax

In 2024, agricultural tax payers will be able to donate 1.5% of their tax to the following:

• trade union of individual farmers,
• the audit union of agricultural production cooperatives,
• National Union of Farmers, Agricultural Circles and Organizations.

The condition for transferring part of the tax is to submit an application in this respect and pay the full amount of tax due, which is the basis for calculating the amount to be transferred.

The application must be submitted to the municipal office between March 1 and November 15 of the current year. It can be submitted either in writing or electronically.

As the agricultural tax constitutes municipal income, the state budget will reimburse municipalities for the income lost in connection with the transfer of 1.5% of the tax.

2. Tax rate

The tax rate depends on the average purchase price of rye for the 11 quarters preceding the quarter preceding the tax year. This price is determined based on a statement from the President of the Central Statistical Office. For land used for agricultural purposes, the tax is the equivalent of 2.5 quintals of rye per hectare. For other land, the agricultural tax is the equivalent of 5 quintals of rye per hectare. According to the aforementioned statement from the President of the Central Statistical Office, the agricultural tax rate per hectare will be PLN 224.08, and per hectare PLN 448.15. Compared to 2023, the rates will increase by PLN 38.95 and PLN 77.80, respectively. However, municipalities may reduce the amount constituting the average purchase price of rye used as the basis for calculating agricultural tax within the municipality.

Forest tax

The tax rate depends on the average selling price of timber obtained by forest districts for the first three quarters of the year preceding the tax year. This price is determined based on a press release from the President of the Central Statistical Office. The forest tax per hectare for the tax year is the monetary equivalent of 0.220 cubic meters ^of timber. According to the aforementioned press release from the President of the Central Statistical Office, the agricultural tax rate per hectare will be PLN 72.03 in 2024 (an increase of PLN 0.93), with the average price per cubic meter ^of timber reaching PLN 327.43. The tax rate for forests within nature reserves and national parks is reduced by 50%. Municipalities may also reduce the average selling price of timber used as the basis for calculating forest tax within the municipality.

Property tax

Each municipality independently decides the amount of property tax. However, tax rates are limited to maximum rates set by the Minister of Finance.

These rates in 2024 will be:

• Land related to business activity PLN 1.34/m ² (increase by PLN 0.18)
• Land under standing surface water or flowing surface water of lakes and artificial reservoirs from 1 ha of area PLN 6.66/m ² (increase by PLN 0.87)
• Other land, including land used for paid statutory public benefit activities by public benefit organisations PLN 0.71/m ² (increase by PLN 0.10)
• Undeveloped land covered by the revitalization area PLN 4.39/m ² (increase by PLN 0.68)
• Residential buildings or parts thereof PLN 1.15/m ² (PLN 0.15 increase)
• Buildings or parts thereof connected with conducting business activity and residential buildings or parts thereof occupied for conducting business activity PLN 33.10/m ² (increase by PLN 4.32)
• Buildings or parts thereof used for conducting business activities in the field of trade in certified seed PLN 15.50/m ² (increase PLN 2.03)
• Buildings or parts thereof related to the provision of health services PLN 6.76/m ² (increase by PLN 0.89)
• Other buildings or parts thereof, including those occupied for paid statutory public benefit activities by public benefit organisations PLN 11.17/m ² (an increase of PLN 1.46)

Tax on means of transport

Each municipality independently decides the amount of property tax. However, tax rates are limited to maximum rates set by the Minister of Finance.

These rates in 2024 will be:

• For trucks with a gross vehicle weight above 3.5 tonnes and below 12 tonnes, depending on the gross vehicle weight:
  • over 3.5 tonnes up to and including 5.5 tonnes PLN 1,173.19 (an increase of PLN 55.03)
  • over 5.5 tonnes up to and including 9 tonnes PLN 1,957.12 (an increase of PLN 255.28)
  • over 9 tons PLN 2,348.52 (increase by PLN 306.33)
• For a truck with a permissible total weight equal to or exceeding 12 tonnes PLN 4,481.57 (an increase of PLN 584.56)
• For a tractor unit or ballast truck adapted for use with a semi-trailer or trailer with a permissible gross vehicle weight of 3.5 tonnes and less than 12 tonnes PLN 2,739.90 (an increase of PLN 357.38)
• From a tractor unit or ballast tractor adapted for use with a semi-trailer or trailer with a permissible total weight of the vehicle combination equal to or greater than 12 tonnes, depending on the permissible total weight of the vehicle combination:
  • up to 36 tonnes inclusive PLN 3,463.95 (an increase of PLN 451.82)
  • over 36 tons PLN 4,481.57 (increase by PLN 584.56)
• For a trailer or semi-trailer which, together with a motor vehicle, has a permissible total weight of 7 tonnes and less than 12 tonnes, except for those related exclusively to agricultural activities carried out by a taxpayer of agricultural tax PLN 2,348.52 (an increase of PLN 306.33)
• For a trailer or semi-trailer which, together with a motor vehicle, has a permissible total weight equal to or greater than 12 tonnes, except for those related exclusively to agricultural activities carried out by a taxpayer of agricultural tax, depending on the permissible total weight of the vehicle combination:
  • up to 36 tonnes inclusive PLN 2,739.90 (increase by PLN 357.38)
  • over 36 tons PLN 3,463.95 (an increase of PLN 451.82)
• Per bus, depending on the number of seats in addition to the driver's seat:
  • less than 22 places PLN 2,773.16 (an increase of PLN 361.72)
  • equal to or greater than 22 places PLN 3,506.02 (an increase of PLN 457.31).

Fees (market, tourist, advertising)

The amount of a given fee is determined independently by each municipality (in the case of the resort fee, by the municipality with specific spa conditions). However, the fee amount is limited by a maximum rate set by the Minister of Finance.

In 2024, the maximum rates will be:

• Market fee PLN 1,096.39 / day (increase by PLN 143.01)
• Tourist tax
  • PLN 3.22 / day in places with favorable climatic properties, landscape values ​​and conditions enabling the stay of people for these purposes (an increase of PLN 0.42),
  • PLN 4.54 / day in towns located in areas that have been granted the status of a health resort protection area (an increase of PLN 0.60),
  • PLN 6.21 / day in health resorts (an increase of PLN 0.81).
• Advertising fee PLN 3.62 for the fixed part (an increase of PLN 0.48) and PLN 0.33/m2 for the variable part (an increase of PLN 0.05).

As you can see, the maximum rates of all local taxes and fees will increase in 2024. An increase in maximum rates may, but does not necessarily, mean an increase in tax (fee). Their amount depends on the decision of the given municipality.

In the next Tax this and that, we will examine the obligations imposed in 2024 by EU directives (SUP, CBAM, PILLAR 2).

This article is for informational purposes only and does not constitute legal advice.

Legal status as of January 8, 2024

Rafał Knap

Legal Counsel
+48 22 856 36 60 | r.knap@kglegal.pl