Development contributions; collection
Payment obligations for property owners may arise as a result of contracts and development contribution notices.
The development of building areas by providing infrastructure on site is a task of the municipalities. Development facilities for which the residents regularly have to pay on a pro rata basis due to special advantages are typically, on the one hand, the piped facilities (water supply, drainage, district heating) and, on the other hand, the development roads (possibly also parking spaces, green spaces and noise protection facilities). The municipalities have a wide margin of discretion in the concrete design of the road or pipeline route.
An obligation to pay can arise from contracts. For example, if a building contractor accepts the development at his own expense on the basis of a development contract with the municipality and then passes this on to the adjoining owner (purchaser) in the property purchase contract via the purchase price. Frequently, the municipalities themselves acquire the building land, plan and develop it and then refinance themselves in the real estate purchase contract via the purchase price from the adjoining owner (purchaser).
If no contractual refinancing takes place, the municipalities are regularly obliged to cover their development costs through so-called development contributions. It is important to note that it is not possible to charge for "the infrastructure as a whole", but rather contributions are levied separately for each facility, e.g. independent contribution notices for each individual road, for the water supply and for the sewerage system.
In any case, the levying of contributions requires an effective local contribution statute, which can differ from municipality to municipality, so that global statements can only be made to a limited extent. An assessment of contribution notices requires knowledge of the relevant local law, which can be consulted at the municipality.
Contributions for the initial construction of roads, car parks, green spaces and noise protection facilities are referred to in the narrower sense as "development contributions". They are levied on the basis of Art. 5a of the Bavarian Municipal Charges Act (KAG) in conjunction with a corresponding development contribution statute. The obligation to pay contributions arises automatically for the developed properties on the basis of the statutes if the legal prerequisites - above all technical production of the facility, presentation of all invoices and development effect - are fulfilled.
The municipalities are legally obliged to levy corresponding contributions and must not bear more than 10% of the development costs. Since 01.04.2014, development contributions may in principle only be levied within a maximum period of 20 years after the occurrence of the advantage situation. The situation of benefit is given when the development is "ready for operation as a whole", i.e. technically finally completed. In addition, since 01.04.2021 Art. 5a para. 7 sentence 2 KAG applies, according to which development contributions may no longer be levied 25 years after the start of the initial technical construction of a development facility.
For the other development facilities, in particular pipe-bound facilities (water supply, drainage), contributions can also be demanded on the basis of the Bavarian Municipal Charges Act. For this purpose, the municipality must enact two statutes: a master statute regulating the use of the facility (e.g. a water supply statute for the water supply or a drainage statute for the sewerage system), as well as an associated fee statute (usually referred to as a "contributions and fees statute"). Unlike development contributions, the municipality has a choice here: it can finance its investment expenditure through contributions or include it in the calculation of the charges to be levied on an ongoing basis and thus refinance it in many small steps over a longer period. It is also possible to combine both options and to pass on the investment expenditure to the citizens partly through contributions and partly through charges. The decision for one of these options is made by the municipality in the local contribution and fee statutes by providing for appropriately calculated contribution or fee rates.
Contributions for development facilities can reach a considerable amount.
If the levying of contributions leads to particular hardship for the liable party, it is at the discretion of the municipalities to mitigate this in a socially acceptable manner by means of equitable measures, e.g. payment by instalments, annuity, deferral or remission. The person liable to pay the contribution can apply to his municipality for this.
If you do not agree with a contribution notice, please make sure that you comply with the deadlines specified in the relevant appeal instructions. After expiry of these deadlines, the notice becomes final.
Responsible for editing: Bayerisches Staatsministerium des Innern, für Sport und Integration
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