Local taxes and fees 2025, in Alba Iulia, indexed by 10.4%, without public consultation. Almost 25% growth in 2 years

Corneliu Muresan - Locale 2024

Local taxes and fees 2025, in Alba Iulia, indexed by 10.4%, without public consultation. Almost 25% growth in 2 years

On the agenda of the regular meeting of the Alba Iulia local council on April 29, 2024 is the draft decision on the 10.4% indexation of local taxes for the year 2025.

Indexing takes place under the law. In two years, due to high inflation, the increase in local taxes in Alba Iulia was exorbitant: 13.8% for this year and 10.4% for 2025. Alba Iulia City Hall had, even last year, the possibility to reduce the tax base to further reduce the burdensome fiscal burden for economic agents, as other municipalities in Romania have done.

The project on the indexation of local taxes and fees was not in public consultation. The representatives of the institution declared for ziarulunirea.ro that, according to the law, the public debate was not mandatory and nor did they consider it necessary to do so.

The practice of the Alba Iulia town hall of not doing a public consultation throws the city of Marii Uniri among the communes. Almost all county seat cities, even if it was an indexation, made public consultations. It was normal, as a sign of respect for citizens and economic agents, to consult them on the indexation of local taxes and fees. Other administrations probably considered it important to debate what will be done with this money: nurseries, kindergartens, the asphalting of some roads or, as in Alba Iulia, the payment of the mayor’s nababi salaries Gabriel Codru Pleșa – 32,603 lei, and of the vice-mayors Emil Antoniu Popescu and Marius Filimon, 28,980 lei.

Read also: It’s sad! Local fees and taxes 2024, in Alba Iulia, increase by 13.8%

The public debate would have been important to find out the citizens’ opinion regarding the level of local taxes and fees in Alba Iulia, not just to inform what investments will be made from these indexations.

If we refer to the personnel expenses from the 2024 budget of the Alba Iulia town hall and the number of employees in its own apparatus, their average gross incomes are about 65% higher on average than the average incomes from the private sector in Alba county.

According to the project, for the fiscal year 2025 any tax or any local tax that consists of a certain amount in lei or that is established on the basis of an amount in lei and that constitutes income for the local budget of the municipality of Alba Iulia is indexed with the inflation rate for the year 2023, respectively 10.4%, applied to local taxes and charges established in fiscal year 2024, with the exception of the tax/tax on buildings which is updated annually based on the values of the buildings and the land covered by them, included in the market studies regarding the indicative values regarding real estate in Romania, administered by the National Union of Notaries Public in Romania.

Read also: It’s sad! TAXES and TAXES new or increased by the Government for 2024 – the year in which “taxes and taxes do not increase!”

According to Art. 3 in the decision on the approval of the levels for taxable values, local taxes and fees, other taxes, special taxes and fines applicable in the year 2025, any taxes or any local taxes, which consist of a certain amount in lei or which are established based on an amount in lei and which constitutes income to the local budget of the municipality of Alba Iulia, will be calculated taking into account the inflation rate for the year 2023, respectively 10.4%, applied to the local taxes and fees established in the fiscal year 2024, with the exception of the tax or tax on buildings, which is updated annually based on the values of the buildings and the land covered by them, included in the market studies regarding the indicative values for real estate in Romania, administered by the National Union of Notaries Public in Romania. In the case of the amounts mentioned in the table provided for in art. 470 para. (5) and (6) of Law no. 227/2015 on the Fiscal Code, with subsequent amendments and additions, the provisions of art. 2.

By HCL no. 497/2023, the levels for taxable values, local taxes and fees, other taxes, special taxes and fines applicable in 2024 were approved. In accordance with the provisions of art. 491 para. (1) from Law no. 227/2015 on the Fiscal Code, as amended by art. I point 116 of OG no. 16/2022 regarding the amendment and completion of Law no. 227/2015 on the Fiscal Code, the repeal of some normative acts and other financial fiscal measures, “in the case of any tax or any local tax, which consists of a certain amount in lei or which is established on the basis of a certain amount in lei, the respective amounts is indexed annually, until April 30, by the local councils, taking into account the inflation rate for the previous fiscal year, communicated on the official websites of the Ministry of Finance and the Ministry of Development, Public Works and Administration, with the exception of the tax/tax on buildings that are updated annually based on the values of the buildings and the land covered by them, contained in the Market Studies regarding the indicative values for real estate properties in
Romania, administered by the National Union of Notaries Public from Romania”.