Municipal tax rates 5 percent up

  • Sewerage charges 6.5 percent higher
  • Marginal increase waste disposal tax
  • Increase waste disposal tax rates above average in large municipalities

Dutch municipalities expect to receive 7.7 billion euro in municipal taxes this year, an increase by 5 percent relative to 2008. According to figures released by Statistics Netherlands based upon municipal budget data, revenue from sewerage charges rose most rapidly, followed by property tax (OZB) and waste disposal tax.

Estimated revenue from sewerage charges increase by 6.5 percent relative to last year. The increase is consistent with the average annual increase of 7.3 percent over the past decade. Operating costs of the sewerage system grew considerably in recent years as a result of overdue maintenance. Since 2008, the costs of the separate discharge of rainwater and surface water management can also be covered by the revenue of sewerage charges.

Total OZB revenue of all municipalities is expected to grow by 4.7 percent in 2009 to 2.9 billion euro. On the basis of the budget figures, the increase remains within the macro norm range of 6.11 percent as set by the cental government. In 2008, the maximisation of the OZB rates was abolished and municipal authorities are now at liberty to set their own rates.

Revenue from waste disposal tax will increase by 2 percent in 2009. The increase is fairly modest compared to the average annual increase by 4.1 percent  over the past decade. The modest increase in 2009 is attributable to small and medium-sized municipalities, which recorded a tax revenue increase by 0.8 percent. Revenue of the twenty-five largest municipalities with a population exceeding 100 thousand is supposed to increase by 4.2 percent. The difference is caused by the fact that the costs of waste collection and processing will increase more for large than for smaller municipalities.