Pardubice plans to increase property tax on industrial and commercial zones

Pardubice is planning to increase its property tax. The increase should be applied to important industrial and commercial zones, while residents will not be affected. The proposal has been supported by the city council and will be approved by councillors on Monday. Thanks to the planned change, the city will gain tens of millions of crowns a year, which it wants to invest in the city's infrastructure. City representatives told journalists today. The local tax coefficient is expected to increase from two to five.

"The measure is not supposed to affect the city's residents, who have already had their tax increased by the state, we don't want to put another burden on them. Over the last ten years, the market value of property owners' property in industrial and commercial zones has increased significantly, but the property tax has remained the same and has not increased accordingly," said Mayor Jan Nadrchal (ANO).

Pardubice will invest the funds in the city's infrastructure. "We will want to use this extra money for the city treasury for necessary investments in civic amenities, such as parking capacities or costs associated with the construction and extension of schools and kindergartens," said Deputy Mayor Jakub Rychtecký (Žijeme Pardubice/SOCDEM).

Since the government has pushed through a reduction in the share of some taxes for cities and municipalities in the consolidation package, cities and municipalities have to look for additional financial resources all the more. Pardubice welcomes the fact that the state has allowed local governments to increase local property tax coefficients. "For businesses, a higher property tax reduces the tax base, it won't be fundamentally threatening to them," Rychtecký said.

The measure will affect industrial zones in Staré Čívice, Pardubice, Semtínzona and Parama. Only the industrial and commercial zones, which, according to the city's analysis, put the most strain on transport infrastructure and the city's environment, and which put pressure on school capacity, health care and other civic amenities, will have their property tax increased.

In addition to industrial zones, these would be complexes with more shops and services. These are shopping zones with the Globus, Albert Polabiny, Kaufland Polabiny, Albert and Lidl near the railway station, Palác Pardubice, Billa and Mountfield - Svítkov, Kaufland and Lidl - Višňovka, Lidl-Penny-Albert - Dubina chains.
"Most of these multinational corporations tax their profits in countries other than the Czech Republic. The current government is passing on its inability to reduce its own operating costs to run the Czech state to its citizens, towns and municipalities. In order not to have to raise property tax and other fees on citizens, we are using the legal option of taxing businesses and establishments in industrial and commercial centres," said Councillor František Brendl (Together for Pardubice).

Source: Pardubice and CTK