Real estate tax during the suspension of operations

An entrepreneur deciding to suspend operations should take into account that non-residential buildings, structures and land are subject to real estate tax at the higher rates provided for business activity. It is worth recalling here that, in accordance with the applicable regulations, the commune may adopt a resolution pursuant to which these rates will be reduced, taking into account the upper limits of the rates applicable in a given tax year.

Real estate tax and suspension of activity

According to the opinion of the Minister of Finance, it is clear that in the period when the entrepreneur does not perform economic activity, land, buildings and structures are still in his possession and are subject to real estate tax at higher rates.

This view is confirmed by numerous judgments of the Administrative Courts (e.g. the judgment of April 3, 2012, reference number I SA / Bd 24/12, the judgment of February 2, 2011, reference number I SA / Gd 1028/10, judgment of on September 10, 2009, reference number I SA / OI 474/09).

The Minister of Finance, in response to a parliamentary question 17438/13, explained that the commune may resolve the issue of applying lower rates during the period of suspension of activity. Commune councils have the right to differentiate real estate tax rates, taking into account the way of using the taxed items. In a resolution, communes may specify lower real estate tax rates applicable during the period of suspension of activity.

According to Art. 7 sec. 3 of the Act on Local Taxes and Fees, the commune council is entitled to introduce, also by way of a resolution, non-statutory real estate tax exemptions, including, for example, taxable items during the period of suspension of economic activity - also taking into account the provisions on assistance public.