News about increase in cadastral values have alarmed many, as it also means an increase in property taxes. Exactly new apartments in Riga are one of the categories for which the cadastral value will increase the most in 2022. Consequently, several parties promise various tax reliefs to Rigans before the extraordinary elections to the Riga City Council on August 29. –
Various discounts can be set for municipal real estate tax, and changes in the tax policy have mentioned in their programs ten of the 15 lists that are hoping to enter the Riga City Council. Everyone promises to reduce the tax, but the groups and recipients of discounts differ.
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For example, the parties “Alternative”, the National Union and the Association of Latvian Regions have included in the programs a general promise to reduce the tax, but nothing is explained in detail.
A similar promise can be read in the program of the Greens and Farmers’ Union, which promises to develop a real estate tax rebate program for all Rigans.
On the other hand, the “New Unity” is a little more specific, whose program promises to reduce real estate tax payments on land owned by private individuals by a third.
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The New Unity is also the only party to indicate how the tax will be spent. The entire amount will be invested in infrastructure, while a quarter will go directly to the neighborhood that paid the tax, and the use of this money will be decided by the residents themselves.
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The second group consists of parties that promise various types of relief for a single home.
For example, the “New Harmony” promises that the only housing tax will not be paid at all, but the Center Party promises to apply a 90% discount to the tax, while “United Latvia” and the national union “Justice” generally promise significant tax relief for the only housing.
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A different offer is for the Latvian Russian Union, which promises to exempt the first 50 square meters of living space from tax, while the New Conservative Party offers to abolish the tax on pensioners’ housing worth up to 100,000 euros with land worth up to 10,000 euros. So not for everyone, but for pensioners.
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When asked about the possibilities of local governments in real estate tax policy, the Ministry of Environmental Protection and Regional Development (MEPRD) confirmed that local governments can determine different groups of the population to which discounts can be granted. However, the tax cannot be abolished in full – the maximum rebate is 90%. For example, in Jūrmala, such a discount for land is suitable for all residents declared in the city.
But the law does not provide for the possibility of reducing or abolishing the tax on the sole dwelling or applying a non-taxable minus.
CONTEXT:
For the start of the Riga City Council emergency elections 15 political forces have appliedwho have submitted their lists of candidates.
For a reason government decision to encourage the dismissal of the Riga City Council became a waste saga. Later council management agreed to convene three consecutive meetings of the council with the opposition political forces and not to ensure a quorum in them. After three failed council meetings, Riga City Council could be declared incapacitated and its dismissal decided. And in mid-February the Saeima supported, later the president promulgated a law on the dismissal of the council.
However, the elections had to be postponed due to Covid-19, and on April 16, the Saeima agreed to support the holding of the Riga City Council emergency elections as a matter of urgency. 29. in August.
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