Lower tax rate for garages. Possible tax exemptions

• On 2 June, the consolidated text of the Act on Local Taxes and Fees was published in the Journal of Laws.
• The document takes into account changes to the regulations introduced by three major amendments adopted in the last nine months.
• They concern, among others, changes to the definition of a structure and a lower tax rate for garages in residential buildings.

The consolidated text of the Act on Local Taxes and Fees published on Monday, 2 June in the Journal of Laws takes into account numerous changes to the regulations introduced by three major amendments adopted in the last nine months.

• introducing a provision enabling the municipal council to exempt from property tax land, buildings and structures or parts thereof that are used for purposes related to providing social assistance ,
• introducing an autonomous definition of a "building" as an object permanently attached to the ground, separated from space by building partitions, having foundations and a roof, regardless of the provisions of the Building Law,
• defining the concept of "permanent connection with the ground" as a connection ensuring the stability of the object and resistance to external factors, which is to eliminate disputes regarding the qualification of objects (e.g. containers) as structures, together with an annex regarding which objects there is a tax obligation ,
• clarifying that rooms intended for storing vehicles in residential buildings (e.g. garages) are considered a residential part, which affects the application of a lower tax rate ,
• updating the list of objects considered as structures for taxation purposes,
• changes in the taxation of multi-car garages.

1. Act of 1 October 2024 on the income of local government units (Journal of Laws, item 1572),
2. the Act of 18 October 2024 amending certain acts related to the granting of de minimis aid (Journal of Laws, item 1635),
3. the Act of 19 November 2024 amending the Agricultural Tax Act, the Local Taxes and Fees Act and the Stamp Duty Act (Journal of Laws, item 1757) and changes resulting from the provisions announced before 16 May 2025.