Betterment levy (opłata adiacencka) – the key information
Text from 2019. Laws, rates and prices may have changed since then. Ask an agent
Being the owner of a property such as a flat, a house or even commercial premises comes with a certain kind of responsibility. Additional formalities and fees may appear when signing a contract or in other circumstances. One of the additional matters to deal with in connection with a property may be the betterment levy (opłata adiacencka). You will find the key information about it in this article.
The betterment levy (opłata adiacencka) – the key information
You may be wondering what the fee mentioned above is. Here is the answer. It is a fee that must be paid to the municipality when the value of the property you own has risen as a result of its division, or of its division and consolidation. The fee can also be charged when technical infrastructure facilities are built on the property with funds from the State Treasury or local government units. However, the municipality has the option, not the obligation, to charge the fee. The betterment levy does not apply to people who have designated the property for agricultural or forestry purposes. The decision to charge the levy in question is issued by the head of the municipality, that is, the city president, mayor or wójt (head of a rural municipality). In the case of a division of a property, the decision to charge it can be issued within three years of the event.
How much can the fee be?
The betterment levy is calculated as a percentage of the increase in the value of the property. There are, however, thresholds that cannot be exceeded. Where the increase in value results from a division, a fee higher than 30% of the difference in value cannot be charged, and where the increase results from the construction of infrastructure facilities or from the consolidation and division of the property, the threshold is 50%.
Can the betterment levy be avoided?
You can appeal against a decision ordering payment of the betterment levy. The valuation that forms the basis for calculating the fee can be challenged. The deadline for appealing must be remembered.
If you would like to find out more on this or any other property-related topic, we invite you to get in touch with the staff of REMAX Gold. We will try to answer every question.
