The councillors adopted a resolution exempting the following from property tax:
- residential buildings or residential parts thereof, except those used for conducting business activity
- other land.
The justification for the resolution is that the municipality’s financial situation and reduced debt have created conditions in which residents should feel the benefit.
The property tax exemption applies exclusively to residential buildings, or parts thereof, in which no business activity is conducted, as well as to all other land. Once the resolution enters into force, i.e. on 1 January 2015, the following will no longer be taxed as before with property tax: residential buildings or parts thereof at a rate of PLN 0.73 per m² and other land at a rate of PLN 0.45 per m².
Approximately 12,000 taxpayers will be covered by the exemption. The observed process of residents migrating to neighbouring municipalities is ongoing, and limiting it is in the interest of the city of Bolesławiec. The proposed resolution, introducing an exemption from property tax for residential buildings or parts thereof and other land, seeks to limit this phenomenon and increase the city’s attractiveness among potential new residents. It may also lead to an influx of new investors and the creation of new jobs.
An increase in the number of residents will in the future result in higher revenues from income tax (PIT) payments in their new place of residence, which in turn will improve the quality of life of residents of the Bolesławiec urban municipality. The proposed solution is an incentive to decide to purchase building plots, build single-family homes and settle in the city of Bolesławiec. The estimated impact of the property tax exemptions introduced in 2015 is approximately PLN 2,000,000.