The amended Local Taxes and Fees Act came into effect on January 1, 2025. The most significant change concerns property tax. What has changed and how might it impact tax settlements? Learn more in today's article from the Tax This and That series.
The changes were prompted by rulings of the Constitutional Tribunal, which found that tax law, when defining the terms "building" and "structure," should not refer to other branches of law, in this case the Construction Law. However, the changes apply beyond this.
According to the amended regulations, a building is a structure with installations ensuring its intended use, constructed using construction products, permanently attached to the ground, spatially separated by building partitions, and possessing foundations and a roof. A building can also be defined as a structure that meets these requirements, even if it is part of a structure classified as a structure.
The buildings are:
- facilities listed in the annex to the Act, together with installations ensuring their use in accordance with their intended purpose,
- construction parts of devices that do not constitute part of the building,
- construction parts of wind farms and nuclear power plants,
- foundations for machines and devices, technically separate from these machines and devices,
- connections to the building structure – made using construction products.
A definition of permanent connection with the ground has also been introduced, which is the connection of a building structure with the ground, which provides the structure with stability and the ability to counteract external factors beyond human control that may destroy or cause the building structure to shift or be displaced to another location.
The above changes are significant for property owners. It should be noted that the changes, while clarifying certain issues, still leave open potential interpretational uncertainties. Furthermore, due to the change in the definition of structures and buildings, it is necessary to verify whether previously taxed structures fall into a given category. Situations are possible in which a given structure should be classified in a different category or excluded from taxation altogether. Furthermore, it may happen that a structure previously exempt from taxation will become subject to taxation.
Taxpayers who took advantage of the extended deadline to file their tax returns must do so by the end of March. Those who have already filed their returns can submit appropriate corrections and pay any outstanding tax plus interest or request a refund of any overpaid tax.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of March 7, 2025.
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