"Fair distribution!"

Head of the Association of Municipalities calls for home office tax reform

Joahnnes Pressl wants to replenish local authority coffers and is calling for fair shares.

(Bild: Erich Marschik)

New coalition negotiations, old demands: Association of Municipalities President Johannes Pressl (ÖVP) is calling for a fair share for Austria's municipalities in terms of CO₂ tax and digital tax. He is also pushing ahead with the demand for a municipal tax reform for home office regulations. What lies behind this. 

For the President of the Association of Municipalities, Johannes Pressl, the municipal council elections on Sunday in Ardagger (Lower Austria) are all about his mayoral office. Before and after that, Austria's Lord Mayor is concerned with the big picture for the municipalities. He is demanding a quick agreement from the coalition negotiators, but above all "financial justice". According to Pressl, the 2092 red-white-red municipalities currently lack 1.4 billion euros in their coffers.

This is how money should flow into the coffers
Money that is needed for childcare, for example, for which the municipalities pay an additional billion from their own budgets. Money could be flushed into the coffers in future through the abolition of the climate bonus and the digital tax. Currently, 100% of the revenue from the CO₂ tax and the digital tax still goes to the federal government.

The municipalities want to divide up the money via financial equalization - and thus their shares of around twelve percent each. Pressl's proposal for municipal tax splitting for employees working from home has raised eyebrows. In other words, if an employee works from home two days a week, this is where the tax revenue should end up on a pro rata basis in future.

"Clear commitment" required
"We are calling for a clear commitment to the municipalities and rural areas. This requires a fair distribution of financial resources," says the Lower Austrian. Pressl is also ready for reform. In order to reduce bureaucracy and costs, the association system for levies could be strengthened at inter-municipal level. According to Pressl, an increase in property tax for property owners should also be "discussed in a value-free manner".