Expert warns:

The tax that will make living in Tyrol even more expensive

Housing is already very expensive in Tyrol. A higher property tax will drive costs up even further.

(Bild: Birbaumer Christof)

Tyrol's municipalities are largely heavily in debt, so an increase in property tax B, which has not been touched since 1993 - as brought into play by the "Zuckerl coalition" - comes at just the right time. However, the project also has its downsides, as the Tyrolean Association of Municipalities has now pointed out.

As reported, Tyrol's municipalities are facing difficult times when it comes to financing municipal tasks. An increase in property tax B for building land, which has not been adjusted since 1993 and no longer reflects the real land values, especially in the expensive residential area of Tyrol, could bring relief.

Reforms first, then think about an increase
The Association of Municipalities is naturally in favor of reforming the property tax. But not without ifs and buts, but with a whole series of restrictions. There is one main reason for this: "We are administering ourselves to death in many areas," says Karl-Josef Schubert, President of the Association of Municipalities. "We first need administrative reform and must reduce bureaucracy before thinking about a tax increase."

There is a great need for structural reform and administrative simplification in the public coffers of every local authority.

Karl-Josef Schubert, Präsident des Tiroler Gemeindeverbandes

Everyone would be affected
According to Schubert, a planned Austria-wide increase in property tax would have a particular impact where building land is already scarce and expensive - i.e. in Tyrol. "There is a risk that this would make living in Tyrol, which is already expensive, even more expensive. Because the property tax affects everyone through the operating costs," he warns.

Endless transfers: money is sent around in circles
The municipalities primarily have a spending problem, explains the association president, using the specific example of the municipal medical districts, a medical on-call service for deaths, alcohol test refusals and medical officer referrals. "Tyrol has 70 such districts - Vorarlberg manages with three."

Convention to present solutions
There are many such examples. "Childcare, security, local public transport, transfer payments: Money is sent back and forth between municipalities, the state and the federal government." That is why he is emphatically calling for structural reforms. The Tyrol Convention set up by LH Mattle has precisely this task.

No new tasks please
These structural reforms should range from administrative simplifications to a reform of transfer payments between local authorities and organizational structural changes. "A reform of the property tax should then bring relief for the strained municipal budgets. However, this property tax reform must not lead to the municipalities being 'saddled' with new tasks by the federal government, for which there is then once again insufficient funding."