site.btaRevisions to Legislation Allow Local Authorities to Adjust Property Tax Assessments and Potentially Raise Property Taxes

The legislature backed in principle revisions to the Local Taxes and Fees Act, allowing local authorities to adjust property tax assessments and potentially raise property taxes. The revisions passed in a 93-37 vote with 16 abstentions.

The bill also differentiates immovable property tax by settlement, by zone within settlements, and by type of property.

The opposition voiced fears that the amendments open the door wide to increasing property taxes as these taxes are based on the property tax assessment. Iskren Arabadjiev MP of Continue the Change - Democratic Bulgaria said that where the property tax assessments increase, local authorities will be free to choose to lower the tax rate so as to keep the taxes from rising. 

The revisions also envisage that reference tax assessment for farm land be adjusted on an annual basis. 

A licence tax will be introduced for catering businesses. 

The revisions exempt buildings certificated as Class A energy consumption and as near-zero energy consumption from immovable property tax.