Property tax increase

Cracov's city councillors have decided to increase a property tax rate since January 2013.

Cracov's city councillors have accepted new property tax rate. The capital of Lesser Poland was renowned for one of the lowest rates in regards to the rest of the country. Councillors reason tax increase with lack of expected results connected with e.g. location of new investments in Commune.

Commune council has jurisdiction within setting a property tax providing that it won't be higher that rates set by Finance Minister.

Since 2013, some of operative rates will be:
- land rate connected with conducting business activities - 0,84zł/sqm at maximum rate 0,88zł/sqm (in 2012 it was 0,76zł/sqm) ;
- remaining land rate - 0,40zł/sqm at maximum rate 0,45zł/sqm (in 2012 it was 0,30zł/sqm);
- building rate connected with conducting business activities - 22,14zł/sqm at maximum rate 22,82zł/sqm (in 2012 it was 20,62zł/sqm;
- residential building rate - 0,70zł/sqm at maximum rate 0,73zł/sqm (in 2012 it was 0,62zł/sqm).

Due to new tax rates, stimulations which present differences in costs since 2013 were carried out. For example, for a building designed as conducting business activities with a space of 100sqm on 3acres premises a tax for 2012 was 2290zł and in 2013 it will be 2465zł. It means that annual increase will amount to 175zł and a monthly instalment will increase of about 14,58zł.

Tax policy of Cracov's City Commune on 2012-2014 assume to keep lowered property tax for buildings and lands connected with conducting business activities on a determined area (Branice). Lowered tax is also kept in case of  certain business activities (in 2013 exemption will relate to 49 industries).

Cracov's City Commune due to rate increase will get PLN 421 million of income from property tax.

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