Ten municipalities will raise taxes in 2022, while six municipalities will reduce taxes.
In total, preliminary figures show a municipal tax increase of DKK 122 million next year. But the government wants to reduce the state base tax so that the total tax for the citizens of the country “as a whole” does not increase.
It writes the Ministry of Interior and Housing in a press release. It happens after the municipalities have adopted their budget and taxes for next year.
However, the final statement of the tax result is not expected until December, it reads.
The largest municipal tax increase will be in Gentofte Municipality. Here, the print percentage increases by 0.37 percentage points to 24 percent.
This corresponds to increased income of DKK 99.2 million.
The tax rate is the tax rate used to calculate the municipal income tax.
The tax is also rising in Elsinore, Greve, Solrød, Odense, Fanø, Horsens, Lemvig and Skanderborg.
Conversely, the discharge percentage will be lowered in Kalundborg, Kerteminde and Norddjurs. In Kerteminde, the coverage tax for commercial properties will also be reduced.
The same happens in Næstved, Odense, Holbæk and Egedal.
Of the tax increases approved, however, 42 million are outside the scope of the equalization reform from 2020. Thus, there will be a set-off in the block grant corresponding to the extra tax increase.
The equalization reform has given municipalities the opportunity to raise the tax at the expense of the state if the municipalities were to lose money on the equalization reform.
The reform must create “a Denmark in better balance”, as it read in the text of the agreement. This should create more balance between the country’s municipalities, including the tax rate.
Source: The Nordic Page