From 1 January 2019 local taxes will be facilitated and harmonised. It is intended to simplify the life of property owners, through which e.g. the power line runs. Currently, tax issues in this area vary widely depending on the municipality concerned.
Real estate may be related to economic activities or not related to economic activities, and this results in tax differences. Doubts arise when, for example, an energy line runs through a private area. This creates the possibility that the land will be defined as being used for business purposes.
This issue was highly differentiated according to the municipality, i.e. the tax burden was different depending on the municipality. There was also the possibility of a certain “manipulation” in individual municipalities in order to obtain higher amounts of local taxes.
Several laws had to be amended simultaneously (not only the Act on Local Taxes and Fees). The key principle caused by this change in law is that infrastructure for the transmission of e.g. steam, natural gas or energy, placed on the ground of a person third, will not increase land taxes, provided that this infrastructure is used by the company in a limited way.
The change is justified, for example, because the current regulations could create uncertainty and in practice hinder the life of a specific group of energy companies. In addition, it is difficult to find a justification for a significant variation of such rules depending on the municipality.