Road construction contributions; levying
Since 01.01.2018, no contributions have been levied in Bavaria to finance the improvement or renewal of local roads, restricted public roads, local thoroughfares and street lighting.
With the Act Amending the Local Government Charges Act of 26 June 2018 (GVBl. No. 12 of 29.06.2018, p. 449 f.), the Bavarian State Parliament repealed the legal bases for the levying of road improvement charges in Art. 5 (1) sentence 3 and Art. 5b Local Government Charges Act (KAG) with effect from 1 January 2018 and replaced them with a provision in Art. 5 (1) sentence 3 KAG, according to which, as of that date, contributions for measures of renewal and improvement of local roads, limited public ways, parts of local thoroughfares under the construction obligation of the municipalities and street lighting (road improvement contribution measures) will no longer be levied (cf. LT-Drs. 17/21586).
This provision applies to cases in which the material obligation to pay contributions had not yet arisen at the time the Act came into force. In order to ensure that contributions can also no longer be levied in cases in which the substantive contribution obligations had arisen at the time the Act came into force but the personal contribution obligations had not yet arisen, flanking provisions are made in Article 19(7) KAG. In addition, transitional provisions in Art. 19 (8) KAG resolve the handling of advance payments determined before 1 January 2018.
The right and duty of the municipalities to levy development contributions pursuant to Art. 5a KAG remain unaffected by this Act.
Road extension contributions, similar to development contributions, could reach a sensitive level.
If the levy leads to particular hardship for the liable party - even after the abolition of road extension contributions on 31 December 2017 - it is at the obligatory discretion of the municipalities to mitigate this in a socially acceptable manner by means of equity measures, such as payment by instalments, annuity, deferral or remission. The person liable to pay the contribution can submit an application to his municipality.
In addition, the Free State of Bavaria has established a hardship fund in Art. 19a KAG with a one-off amount of € 50 million to compensate proportionately for certain hardships caused by road extension contributions levied in accordance with the provisions of this Act for the period from 1 January 2014 to 31 December 2017. An independent commission, which is not bound by professional instructions, decides on the granting of benefits.
Links to more information
Responsible for editing: Bayerisches Staatsministerium des Innern, für Sport und Integration
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