Strong increase in the tax power of the district

Strong increase in the tax power of the district

Kulmbach is top – at least in upper franconia and in terms of current tax and apportionment power. This was the result of the youngest corner data, which kreiskammerer rainer dippold presented to the district committee on monday. According to available estimates, the district’s tax power will increase by more than ten percent to over 62.7 million euros next year – an increase of approximately 5.9 million euros over the previous year. The main contributor was the noticeable increase in business tax revenue, which rose by almost 23 percent to over 22.6 million euros (2017: 18.4 million). The levy power is up 9.1 percent, and in euros it has risen from 6.4 million euros to 76.8 million euros.

With these figures, kulmbach climbs to the top of all municipalities in a comparison of upper franconia. In the bavarian ranking, the district also rose by five places, but at 47th place, it still ranks in the lower midfield and remains a lowly light compared with high flyers such as upper bavaria or swabia.

"These are extremely good figures for us", said district administrator klaus peter sollner (). He did not hide the fact that the stabilization aid from munich had contributed to the positive development of the finances. In five years, the district has benefited from a total of seven million euro. "But it also shows that our efforts to consolidate the budget are bearing fruit and that this is being rewarded by the state government.", said sollner. Current allocations of two million euros again went into debt repayment.

The light and shadow sides of this pay-as-you-go system were pointed out by kulmbach’s mayor, henry schramm. The aid provided by the state government had made a great deal of difference to the municipalities, that is indisputable. On the other hand, for a city like kulmbach, this means that almost nothing of the increased business tax revenue of more than 2.5 million euros is left over for investments in the city because of the district levy. "It is the absurd consequences of this system", said schramm and added in the direction of the district administrator: "i hope that in view of the developments we will be able to talk about the district levy rate."

Sollner replied: "the system is a curse and a blessing at the same time, I agree with the oberburgermeister. Admittedly, it cannot be absolutely fair. We are very grateful for the stabilization aid, it has helped us substantially. But thanks to the positive forecasts, we will in turn be tapped more strongly as a stronger municipality." On the one hand, sollner assumed lower key allocations, on the other hand, the increased tax power of the district will have an effect on the district levy. Nevertheless, he cautions against treating the financing procedure in a discreet manner.

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