Due to Budget Deficit: Are Increases in Property Tax and Housing Subsidies Coming?

"In their (the states'; note) area, revenue-side measures could consist of an increase in housing subsidies, as Vienna has already decided and as could also be implemented by other federal states, or changes in property tax," reports "profil" from a statement by the Ministry of Finance. "Assuming an agreement between states and municipalities, this could be implemented quickly."

ÖVP Politicians Against Property Tax Increase

The municipalities had repeatedly demanded, among other things, an increase in property tax. Marterbauer had recently also indicated sympathies for this. However, Finance State Secretary Barbara Eibinger-Miedl (ÖVP) was cautious. State Secretary Josef Schellhorn (NEOS) also emphasized that there is "not a revenue, but an expenditure problem." However, there was no categorical no from them either. Clearly against a property tax increase were Upper Austria's Governor Thomas Stelzer and Salzburg's Governor Karoline Edtstadler (both ÖVP). ÖVP State Secretary Alexander Pröll also ruled out a property tax increase in the past. Property tax is a significant source of revenue for municipalities. However, the property unit values, on which the property tax is calculated, have not been adjusted for decades. As "profil" writes with reference to Marterbauer, the federal states would first have to agree on an increase in unit values.

(APA/Red)

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