Tax revenues of local governments will increase substantially in 2009. This is announced by the Directorate General of Local Authorities (DGCL), in a note released Wednesday. The DGCL estimated that the four direct taxes tax, residence tax and taxes on land and buildings not built should bring $ 71 billion to local governments. The increase in local taxes would be 8.1%, nearly double the increase of 2008 (+4.4%). This increase is explained by buoyant tax bases (+4.7%) and a significant increase in rates (+3.4%). This increase affects all communities but especially the departments and municipalities. "The departments have their rates increased more than other communities," said the DGCL, considering the increase of revenues to 11.4%, including 6.3% due to higher rates.Conversely, "the development of overall tax revenue from other communities still more effect than the base rate effect".
According to the notes, business tax, hotly debated in the context of discussions on the 2010 budget, expected to yield 31.3 billion euros, the housing tax 16.5 billion, the tax on built property 22 3 billion and that the undeveloped 880 million. Local taxes are 39% of operating revenue of local governments.
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