We are being hit by reductions in personal income tax revenue, the effects of pay rises in education and of increases in the minimum wage and changes to the rules for calculating it, higher energy prices, rising service costs, and insufficient funding for delegated tasks. The lack of compensation for these reduced revenues and the increased costs of carrying out statutory municipal tasks directly leads to a reduction in the Bolesławiec city budget’s own revenues.

For five years, during a period of stable municipal finances, Bolesławiec managed to maintain an exemption from property tax on residential buildings or residential parts thereof, as well as on land. Maintaining this exemption was also assumed in the long-term financial forecast, which is an important financial-planning instrument in local government. However, government decisions concerning taxes, pay rises in education, the effects of increasing the minimum wage, and rising service costs are placing a severe burden on the Bolesławiec city budget, consequently forcing changes in the municipal authorities’ tax policy. In order to balance the budget, the municipal authorities are obliged to restore the tax on residential buildings or residential parts thereof and on land, and to change local tax and fee rates.

It is worth noting that a municipality does not have its own money. In 2020, the shortfall in the Bolesławiec city budget consists mainly of: increased costs—including wages—in education, amounting to approximately PLN 4 million; electricity charges—approximately PLN 1 million, assuming the energy price remains unchanged throughout the year; an increase in the minimum wage—approximately PLN 1 million; and higher prices for other services—approximately PLN 2 million. In total, this amounts to approximately PLN 8 million. In order to balance the Bolesławiec city budget, an essential element will be an increase in local taxes, which will amount to approximately PLN 5.5 million in total. As can be seen, other savings will also be necessary.

Education expenditure is one of the main items in the budget. It is worth noting that total education expenditure in 2020 will exceed PLN 52 million, including more than PLN 22 million from the Bolesławiec city budget. Just under PLN 30 million will consist of grants and a subsidy from the state budget. It is also symptomatic that PIT revenue recorded a decline in the city budget for the first time this year—more than half a million złoty less.

View photo: Councillors of the Bolesławiec City Council View photo: Councillors of the Bolesławiec City Council View photo: Councillors of the Bolesławiec City Council

The Bolesławiec City Council set the rates of property tax and motor vehicle tax, as well as the daily market fee rates in the Municipality of Bolesławiec.

Property tax rates:

1) On land:

  1. associated with conducting business activity, regardless of how it is classified in the land and building register—PLN 0.95 per 1 m² of area,
  2. under standing surface waters or flowing surface waters of lakes and artificial reservoirs—PLN 4.80 per 1 ha of area,
  3. other land, including land used for paid statutory public-benefit activities by public-benefit organisations—PLN 0.50 per 1 m² of area,
  4. undeveloped land within a revitalisation area referred to in the Revitalisation Act of 9 October 2015 (consolidated text: Journal of Laws of 2018, item 1398, as amended) and located in areas for which the local spatial development plan provides for residential, service or mixed-use development comprising exclusively these types of development, if four years have elapsed since the plan entered into force with respect to that land and construction has not been completed during that period in accordance with construction law—PLN 3.15 per 1 m² of area.

2) On buildings or parts thereof:

  1. residential buildings—PLN 0.81 per 1 m² of usable floor area,
  2. associated with conducting business activity, and residential buildings or parts thereof used for conducting business activity—PLN 23.90 per 1 m² of usable floor area,
  3. used for conducting business activity involving the trading of certified seed—PLN 11.18 per 1 m² of usable floor area,
  4. associated with the provision of healthcare services within the meaning of the regulations on medical activity and occupied by entities providing such services—PLN 4.87 per 1 m² of usable floor area,
  5. other buildings, including those used for paid statutory public-benefit activities by public-benefit organisations—PLN 8.05 per 1 m² of usable floor area.

3) On structures—2% of their value determined on the basis of Article 4(1)(3) and (3–7) of the Act on Local Taxes and Fees.

Annual motor vehicle tax rates:

  1. for trucks with a permissible gross vehicle weight: a) over 3.5 tonnes up to and including 5.5 tonnes—PLN 847, b) over 5.5 tonnes up to and including 9 tonnes—PLN 1,414, c) over 9 tonnes up to less than 12 tonnes—PLN 1,696.
  2. for trucks with a permissible gross vehicle weight of 12 tonnes or more (tax rates depending on the number of axles and permissible gross vehicle weight—available in the table at www.boleslawiec.eu)
  3. for tractor units and ballast tractors designed for use with a semi-trailer or trailer, with a permissible gross combination weight from 3.5 tonnes to less than 12 tonnes—PLN 1,979,
  4. for tractor units and ballast tractors designed for use with a semi-trailer or trailer, with a permissible gross combination weight of 12 tonnes or more (tax rates depending on the number of axles and permissible gross combination weight of the vehicle combination: tractor unit + semi-trailer, ballast tractor + trailer—available in the table at www.boleslawiec.eu)
  5. for trailers and semi-trailers which, together with a motor vehicle, have a permissible gross vehicle weight from 7 tonnes to less than 12 tonnes (excluding those used exclusively for agricultural activity conducted by an agricultural-taxpayer)—PLN 1,696,
  6. for trailers and semi-trailers which, together with a motor vehicle, have a permissible gross vehicle weight of 12 tonnes or more (excluding those used exclusively for agricultural activity conducted by an agricultural-taxpayer)—tax rates depending on the number of axles and permissible gross combination weight of the vehicle combination: semi-trailer/trailer + motor vehicle—available in the table at www.boleslawiec.eu)
  7. for buses, depending on the number of seats excluding the driver’s seat: a) fewer than 22 seats—PLN 2,003, b) 22 seats or more—PLN 2,533.

Daily market fee rates collected in the city of Bolesławiec from natural persons and legal persons, as well as organisational units without legal personality, conducting sales at marketplaces defined in the Act on Local Taxes and Fees:

  • sales by individuals, allotment holders and farmers of small quantities of agri-food products from their own allotment, farm or cultivation—for occupying an area of 1 sq m—PLN 5.00;
  • sales from a passenger car, truck or trailer—PLN 15.00; a) for occupying additional space outside the vehicle, per 1 sq m—PLN 11.00;
  • sales from stalls and stands—for occupying an area: a) up to 2 sq m—PLN 5.00, b) for each additional 1 sq m above 2 sq m—PLN 3.00;
  • sales of goods displayed outside the property—for occupying an area: a) up to 5 sq m—PLN 5.00, b) for each additional 1 sq m above 5 sq m—PLN 3.00.