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District of Munich announces record value for taxpower

2021-10-16T08:16:47.155Z


The district of Munich expects a record for tax revenue. Treasurer Markus Kasper expects 1.335 billion euros in 2022, which is an increase of 14.8 percent compared to the previous year.


The district of Munich expects a record in tax revenue.

Treasurer Markus Kasper expects 1.335 billion euros in 2022, which is an increase of 14.8 percent compared to the previous year.

District

- "The best result we've ever had," commented Kasper when he presented the provisional allocation power figure to the eased district councilors in the finance committee - with an increase of 172 million.

One reason for the enormous tax power is the corona compensation of 83 million.

In 2020, the federal and state governments will replace the municipalities' shortfall in income from trade tax, which will affect the district in 2022.

“That has a huge effect for us,” says Kasper, because 66 percent of the allocation power relates to trade tax.

But even without state aid, the district would have improved its result, emphasized Annette Ganssmüller-Maluche (SPD).

In the district, the allocation power increases

In a comparison of Upper Bavaria, too, the situation is very good: In the district, the allocation power increases by 4.2 percentage points, which is particularly thanks to the district of Munich.

"Almost half of this increase is due to us," said Kasper.

The state capital Munich is showing signs of weakness and has to deal with a decline of 0.4 percent.

It is questionable whether the new coalition in Berlin will pay the compensation again in 2021.

People need more social assistance

The fact that more people needed social assistance during the pandemic is shown by the increased rent payments by the municipalities: the expected 27.5 million were exceeded by 30.6 million.

Funds were not called up for youth welfare because outpatient help such as family visits by social workers was canceled due to corona.

"There could be a catching-up effect here," said Kasper.

The greatest item

The largest expenditure item in the administrative budget is the district levy: in 2021, the district had to cede 252.5 million to the district.

The big question for Kaspar is: "What will be eaten by the district in 2022?", Because an increase in the district levy from 21.7 to a maximum of 22 percentage points has been announced.

That investment was really expensive

In terms of investments, the Riem campus is the most significant: the district has so far paid 120 million euros this year for the office building in which the many branch offices are moving, for which space in the city area has previously been rented.

"The strategy is working," praised Helmut Horst (CSU), "we did not have to incur too much debt, but we will soon have some relief on rental costs." District Administrator Christoph Göbel (CSU) found that in times of low interest rates, " good leeway "used to create value.

Perhaps the district will even manage without new loans in 2022, "we are currently not planning any borrowing," said Kasper.

Will the county levy be reduced?

Debt fell to 56.1 million at the end of the year (2020: 62.2 million).

The per capita debt of 164 euros is below the Bavarian average of 180 euros.

The reserves stood at 60 million at the beginning of the year, because 50 million were withdrawn, currently ten million are still on the high edge.

The largest income in the administrative budget is the district levy with 558.5 million euros.

The district councils now have to decide how much they can give back to the municipalities.

The SPD has applied for the district levy to be reduced (48 percentage points) and for the municipalities to be “relieved at the right time”.

Source: merkur

All news articles on 2021-10-16

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