The city of Erding would not have to pay sales tax until 2023, but it will do so from 2021. Because the return flow could outweigh the expenses.
Erding -
Five years ago the federal government changed the tax laws.
This means that municipalities also have to pay sales tax resulting from income that a - private - competitor could also generate.
The regulation applies from January 1, 2021, but due to Corona the federal government has granted a two-year extension.
The city of Erding is withdrawing this option, deputy chamberlain Thomas Zahn reported to the city council.
On the other hand, Erding can use the input tax deduction, i.e. gets money back from the tax authorities for investments.
The return flow could outweigh the expenses.
The new sales tax liability also affects areas with no intention to make a profit.
The only decisive factor is whether these services could also be provided by a non-public provider.
The district town will pay sales tax for these things in the future: sales of food, drinks and books in museums, family books, chronicles and cards, income from parking fees, hall use and rental of rooms, services of the building yard, feed-in payments for photovoltaic systems and leasing of commercial properties.
The finance department intends to use the input tax deduction for the construction of new sports and multi-purpose halls, the construction of parking spaces, new construction and maintenance of photovoltaic systems, as well as construction maintenance and operating costs for parking spaces, commercially used buildings and sports halls.
The city council unanimously and without discussion approved Zahn's proposal not to use the extension granted by the federal government until the end of 2022.
In the previous meeting, as reported, the city council decided to impose hall usage fees on the clubs in the course of the opening of the Gerd-Vogt-Sportpark in spring 2021.
The new parking lot at Kronthaler Weiher is therefore chargeable all year round.
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