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Tight coffers in Penzberg: City council does not want to decide on tax increases (yet).

2024-01-25T14:17:38.379Z

Highlights: Tight coffers in Penzberg: City council does not want to decide on tax increases (yet).... As of: January 25, 2024, 3:00 p.m Andreas Baar: First increase taxes, raise a lot of money and then we'll see what happens - that's the wrong way. Citizens and entrepreneurs who would face higher taxes rightly demand that one thing above all is done. This – whether clubs or culture – must be honest. By the way: Higher tax revenues do not automatically go completely into the city coffers. Only the district levy of 54 percent is left.



As of: January 25, 2024, 3:00 p.m

By: Andreas Baar

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Split

Calculate everything in the budget: This is what Penzberg's city councilors are demanding from the administration before they start unpopular tax increases.

© panthermedia/Alexandra Buss

Penzberg - The Penzberg budget urgently needs to be consolidated because of the millions in holes.

But the city council did not want to decide on tax increases for the time being.

The administration should first present savings plans.

City treasurer Marika-Edith Markert had meticulously calculated it for the city councilors.

As things stand, “no balanced budget can be presented for 2024,” she wrote in her draft resolution for the most recent meeting last Tuesday (January 23).

Because the city treasury is still groaning due to a lack of income in the millions.

The year 2023 ended with a loss and things don't look any better with the current approaches for 2024.

The treasurer warned that the deficit currently amounts to around 5 million euros in the administrative budget.

Things look even worse in the asset budget, where the money for municipal investments is located: there is a gap of around 10 million euros.

A deficit that must be covered by the 20025 financial year at the latest.

The treasurer's conclusion: Given the financial situation, “it appears appropriate and justifiable to increase the assessment rates”.

In other words: turn the tax screw retroactively for 2024.

And strong.

Penzberg's city treasurer Marika-Edith Markert has to announce uncomfortable news.

© Andreas Baar

Trade tax: rate has been the same since 1980

Especially when it comes to

trade tax

.

This was last increased in 1980.

“An increase is long overdue,” read the city councilors in the draft resolution.

Penzberg currently has a rate of 330 percent, and the administration proposed increasing it to a whopping 380 percent.

The reason is that Penzberg charges a trade tax that is “far below the average” of the comparable municipalities, said Markert and listed Weilheim, Schongau and Peißenberg (380 each) and Peiting (even 400).

The combing department hopes that this will generate additional annual income of almost 3.5 million euros.

Property taxes

,

which are also an important source of income for a municipality, should also go up.

These were last increased in 2012.

In 2024 it should go retroactively from 350 percent to 380 (property tax A) and 390 (property tax B).

Planned annual additional income: 1.19 million euros or almost 321,000 euros.

The annual

dog tax

should look like this: first dog (from 60 to 80 euros, each additional dog from 100 to 160 euros, fighting dog from 1000 to 1500 euros. Additional income: around 20,000 euros.

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Comment: First save yourself

One thing is clear: the city of Penzberg urgently needs to consolidate its budget.

Million holes need to be filled.

This has been known since last year.

There was a budget freeze for a reason.

But so far there has been no public discussion in the city council about how to do it, nor has the administration presented any concrete proposals.

First increase taxes, raise a lot of money and then we'll see what happens - that's the wrong way.

It's good that the city council took a stand.

Citizens and entrepreneurs who would face higher taxes rightly demand that one thing above all be done: save on municipal expenses.

This also includes voluntary services – whether clubs or culture.

You have to be that honest.

But the people's representatives avoid the topic like the devil avoids holy water.

By the way: Higher tax revenues do not automatically go completely into the city coffers.

Only the district benefits from this, which is left with the district levy of (still) 54 percent.

Andreas Baar

Zehetner says “No”

Everything looked good, but the treasurer, administration and mayor Stefan Korpan (CSU) had done the math without the city councilors.

Especially not with Elke Zehetner (SPD).

In view of the still missing financial package for 2024 (“We are in a time without a budget”), she called for a consolidation of finances.

But you first have to consider other options, such as cutting spending, before resorting to tax increases.

Zehetner called for an “orderly budget process”.

The former mayor specifically rejected the increase in trade tax.

Penzberg has always “seen itself as a commercial location,” criticized Zehetner in the direction of successors Korpan and Markert.

In view of the million-dollar hole in the house, paying taxes for the economy is just “a drop of dew,” warned Zehetner of sending the wrong signal.

She requested that the tax decisions be taken off the agenda in order to wait for a draft budget.

Approval by the parliamentary groups

Approval from the BfP.

There are no problems with income, said Armin Jabs, but “we have had a spending problem over the last few years”.

It is important to start with austerity measures.

Wolfgang Sacher recalled that ultimately only the district benefits from a higher trade tax thanks to a higher district levy for Penzberg.

If the municipal compulsory levy increases, this will endanger the business location.

And anyway: “With a higher dog tax, we have rehabilitated another budget.”

The CSU also moved away from the town hall's tax plans.

Maria Probst said it would be “decent” to first examine all expenditure in the budget before taking the “unpopular step” of tax increases.

Jack Eberl (FLP) defended the politics of the last few years.

Money is not tight “because we have managed incorrectly,” but because expenses are increasing.

However, he urged honesty: If taxes are not increased this year, “we will have to cut voluntary benefits”.

It is not enough “if we sell two properties”.

A no vote

The mayor did not want to let the criticism of the administration stand.

The draft resolutions were “well developed,” emphasized Stefan Korpan.

And the topic of taxes will come up again, he announced.

In the end, however, the city council voted with a large majority for the postponement, only John-Christian Eilert (Greens) said “no”.

Source: merkur

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