The government doubles taxes on buildings without building permit. Until the measure is applied

A new package of fiscal-budgetary measures was put on a public debate on Thursday, providing, among other things, doubling the tax on buildings in case they were built without authorization.

Taxes for buildings erected without self -ignition will double. Pixabay photo

The Ministry of Development, Public Works and Administration announces the opening of the procedure for decision-making transparency of the process of elaborating the following normative act-law on the adoption of measures to increase the financial capacity of the administrative-territorial units, as well as for the modification and completion of some normative acts.

The draft law has as its regulatory object the establishment of fiscal-budgetary measures and aims to increase the financial capacity of the administrative-territorial units in order to strengthen the financial sustainability of Romania by limiting the expenses of the administrative-territorial units and the increase of the incomes so that the financing of the categories of public services to the public. In order to achieve this goal, through the project, a series of measures are established, so as to ensure compliance with the commitments made by Romania regarding the classification in the target of budget deficit, by diminishing some operating expenses of the central and local public institutions and authorities, and respectively, by increasing the budgetary revenues of the administrative-territorial units.

The document makes changes to the Fiscal Code as follows:

• It is established that for the legally carried out works, ie those with a building permit, the tax value will be calculated on the basis of the specific information in the official documents, such as the annex in the application for issuing the authorization and the project annexed to it. Basically, it is ensured that the tax is established according to concrete and official data, to avoid interpretations or unclear estimates.

• The situation of the constructions made without building authorization is regulated, except for those built before August 1, 2001. In these cases, the tax value will be calculated according to the surface of the executed building.

“In addition, a 100% tax increase is introduced for a period of 5 years, starting with the year following the irregularity, ie the construction made without authorization. This measure aims to discourage illegal constructions and to increase the revenues to the local budget, thus penalizing these activities.”is shown in the exposition of reasons of the draft normative act.

Declaration of Partially completed buildings

Essentially, the Government shows, these changes aim to clarify the way of calculating the tax for construction, encouraging compliance with the law and offering a clear method of establishing the tax for illegal works, as well as a penalty for them.

• The legal framework for building tax is clarified and extended, especially in terms of situations in which a building is built and used without the full compliance of the authorization procedures. Thus, it is established that the tax is due not only for the valid authorization buildings, but also for those built with expired authorization (if not requested the extension), as well as for those not built without authorization, if they are found by the authorities by December 31 of the previous year.

This ensures a better record and fiscalization of buildings, even in the case of illegal or incomplete constructions, contributing to the increase of fiscal and urban conformity.

• The procedure for declaring the partially completed buildings is clarified, which did not obtain the extension of the building permit. The buildings must be declared on the basis of a partial reception report, which attests to the physical stage and the built area. The owner who works in his own director must notify the local authority.

The purpose is to ensure the correct identification and taxation of these partial buildings, even if they are not completed or have no complete authorization.

Also, the owners will have the obligation to declare all the buildings, including those built without authorization or with its non -observance, to establish the tax. The non -declaration leads to successive tax increases by 30% for each 6 -month delay period.

Drone inspections

On the other hand, the authorities will be able to carry out field inspections and through satellite images, drones and other technologies to identify buildings without authorization or undeclared. The images can be used as evidence for tax and disciplinary sanctions, in order to improve the control and identification of illegal or undeclared constructions.

Specialized structures from urbanism and taxation will cooperate to automatically transmit data on building permits, validity and technical characteristics (surface, material), to correct the tax correctly, in order to facilitate and automate the data collection process for calculating taxes, reducing bureaucracy and errors.

All these changes aim to strengthen control, transparency and correctness of building registration and taxation, including illegally or partially built, using modern technologies and clear procedures.

• The specialized structures in urbanism can automatically send data on the building permits, validity and technical characteristics (surface, material) in order to establish the correct tax.