This year and next, the Municipality of Mojkovac will continue the practice of exempting owners of land located in zone V - mountainous area from paying real estate tax.
This practice was established seven years ago, and by continuing it, as explained by the local administration, they are trying to provide another incentive for the development of agriculture in that municipality.
"By exempting land taxes in mountainous areas, the local government is providing incentives for the development of agriculture and livestock farming for farms that remain in this area and are engaged in this branch of agriculture. On the other hand, large areas of pastures that are no longer used for this purpose represent a financial burden for the owners," the Municipality explained.
They remind that the owners of these areas are mostly elderly people, beneficiaries of small pensions, and the effect of the burden on citizens' personal budgets is multiplied. Also, in some cases, the property is registered as a decedent, and even the decisions on determining taxes cannot be considered enforceable, given the tax regulations that enforceability begins from the moment of delivery.
This, they say in the local administration, results in the accumulation of tax liabilities that cannot be legally collected.
The total tax assessment for 2016, when the tax for all real estate in zone V was last determined, was around 10.000 euros. The total real estate tax assessment in the Mojkovac municipality is around 270.000, so the exemption accounts for only 3,69 percent of the total real estate tax revenue. The amount that the local budget will lose through the exemption from paying the tax is only 0,47 percent of its own, or around 0,10 percent of total budget revenue.
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