Betterment levy – how to avoid it?

The betterment levy (opłata adiacencka) is an unpleasant obligation that property owners are often unhappy about. The consequences of not paying it can be really serious. The betterment levy on the division of a property – how to avoid it? Read some advice, regulations and tips.

Betterment levy – basic information

Businesspeople's knowledge of this charge is still quite limited. It is charged on account of an increase in the value of a property. The increase, in turn, results from the construction of technical infrastructure, or from the merging or division of properties. The amount of the charge is not affected by the property owner's decision on whether to use the utilities or facilities that have been created. It is distinct from the planning fee (opłata planistyczna). The decision to impose the burden is made by the wójt (head of a rural municipality), the mayor or the city president. The decision can be issued within 3 years of the date on which conditions arose for connecting the property to technical infrastructure, the date on which circumstances were created for using the newly built road, or the date on which the decision on the division of the property was approved.

Betterment levy – verifying the basis of the charge

Do you have doubts about the betterment levy imposed on your property? You can verify it. Check carefully whether the resolution cited in the decision was in force when the document was issued. Also verify the basis for imposing the charge. It is also worth checking whether the decision was actually issued after the circumstances for using the new facilities had genuinely been created. A valuation report prepared by a certified property valuer should be made available for inspection. Analysing the report should involve checking: the date it was prepared and the date the decision was issued, as well as the properties selected for comparison with the property in question. The valuation report can be used for no longer than 12 months from the date it was prepared.

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Other information

It is worth remembering that the betterment levy should not exceed 50% of the established increase in the value of the flat or house. We have only 2 weeks after receiving the decision to lodge an appeal. First we must turn to the local government, specifically the local government appeal board.