Alašské Meziříčí in the Vsetín region will raise property taxes for retail chains in the city from next year. The coefficient for calculating land and building tax will increase from a value of two to a maximum value of five. This could increase the city’s coffers by up to five million crowns per year. Currently, city representatives approved the publication of a generally binding decision regarding the determination of real estate tax calculation coefficients. The coefficient of two will still apply to land plots and other buildings.

Property taxes constitute municipal income, the amount of which can also be adjusted. In July, the Constitutional Court confirmed that municipalities can impose higher taxes on certain business properties, such as factory sites, that generate noise, pollution and other negative impacts. In early September, Vsetín representatives decided to raise real estate taxes for retail chains starting next year. The reason is the high traffic load and associated municipal costs. The decision will take effect from early next year.

“Shopping malls, of which we have several in Valašské Meziříčí, burden the traffic in our city beyond tolerable levels. Negative externalities related to traffic and air pollution are enormous. “In addition, these shopping centers often tax their profits outside the Czech Republic, they do not participate in sports, cultural life in our city, that’s why we decided to tax some shopping centers with higher property taxes,” Mayor Robert Stržínek (ANO) told ČTK and Czech Radio today.