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The Warsaw Voice » Real Estate » May 14, 2008
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Betterment Levy
May 14, 2008   
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According to Polish law, when the value of a property increases, its owner is obligated to pay public levies. These include a special planning charge (renta planistyczna) and a betterment levy (opłata adiacencka).

Under the Property Management Act, a betterment levy is imposed when the property's value increases due to public projects carried out by the local government and involving infrastructure, water mains, road modernization or other upgrades.

Betterment levies do not apply to real estate designated for farming and forest purposes under the local development plan.

Betterment levies are paid to the local government by real estate owners and perpetual usufructuaries (subjects holding perpetual usufruct) who have contributed, in a single payment, the annual fees due for the entire period of the perpetual usufruct.

Betterment levies are also paid by subjects who have acquired a new property as a result of division or consolidation of the real estate.

The betterment levy has to be paid after the rural commune administrator or city mayor issues a betterment levy decision. The decisions are taken every time the property is upgraded or its owner is allowed to benefit from new infrastructure or utilities. The value of the percentage rate of the betterment levy may not exceed 50 percent of the increase in the value of the property resulting from the construction of new infrastructure. In the case of division of real estate, the rate may not exceed 30 percent of the increase in the value of the property. The percentage rate of the betterment levy is set by way of a resolution adopted by the municipal council.

To establish the value of the real estate after insrease of its value, the property is valued by an authorized expert commissioned by the municipality according to the state and prices valid on the day the betterment levy decision was made. The owner or perpetual usufructuary must make the payment within 14 days after the betterment levy rate decision becomes final.

If plots of land created as a result of division of the property are designated for the construction or widening of public roads, to determine the value of the property both before and after the division, the area of the plots designated for the construction or widening of these roads is subtracted from the total area of the property.

Legal basis: The Property Management Act of Aug. 21, 1997, as promulgated in the Dziennik Ustaw journal of laws of 2004, No. 261, item 2603, with subsequent amendments.

Ewelina Rowińska

LENGIEWICZ WROŃSKA BEREZOWSKA I WSPÓLNICY Kancelaria Prawnicza s.c. l TEL.(+48-22 826 30 33, 828 14 73; e-mail:lwb@lwb.com.pl
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