Municipal rates increase by over 4 percent
In 2008, proceeds from municipal taxes were 4.4 percent higher than last year. This is mainly attributable to an increase in property tax (OZB) and sewage charges. According to figures released by Statistics Netherlands based on municipal budget data, office fees and building permits showed the highest proportional increase.
Property tax higher due to recent property evaluation
Proceeds from property tax for owners grew by more than 4 percent. Houses were reassessed, resulting in an average house value increase of 7.8 percent. The Act on Property Assessment (WOZ) is the basis for the OZB tax. Many municipalities reduce their OZB rates to compensate for the higher WOZ value.
Increase sewage charges levels off
Sewage charges increase by 6.4 percent. The increase agrees with the upward trend which set in several years ago. In the past four years, sewage charges went up by an average of 8 percent annually. In this period, municipal authorities imposed an extra increase to make sewage charges cost-effective. The money is spent on maintenance, expansion and renewal of the sewage system and particularly on rainwater drainage.
Office fees markedly higher
Office fees rose by nearly 11 percent. The maximum rate for the identity card is raised substantially to cover the costs of inclusion of a chip in travel documents and adjustment of the production process. In the past two years, the government has renounced from increasing the maximum rate to persuade citizens to buy the ID card.
Proceeds building permits considerably higher
Proceeds from building permits were nearly 10 percent higher, chiefly due to rate increases and higher building costs. Building permit rates are usually based on the overall building costs.