The aim of the Act is to establish into self-regulating competence a financial tool that will be created by each municipality on a voluntary basis by a generally binding regulation, which shall have an acceptance role, development role and anti-corruption role.
Act 447/2015 Coll. on local development fee and on changes and amendments to certain acts
On 7 December 2016, National Council of the Slovak Republic enacted an act amending Act No. 447/2015 Coll. on local development fee and on changes and amendment to certain acts http://www.nrsr.sk/web/Default.aspx?sid=zakony/zakon&MasterID=6086 /Approved wording of Act of National Council of the Slovak Republic 271.
The aim of the Act is to establish into self-regulating competence a financial tool that will be created by each municipality on a voluntary basis by a generally binding regulation, which shall have an acceptance role, development role and anti-corruption role.
The Development Fee can be established by a municipality in its territory, a separate part thereof or a separate cadastral area by a generally binding regulation.
Once a municipality decides to establish the fee and it is approved by local authorities and included in Generally Binding Regulations, the municipality is obliged to impose the fee on a person – payer, who has met conditions set by the Act.
Subject to development fee is a land building in the territory of the municipality
a) for which a valid building permit has been issued to permit the construction (hereinafter only the “Building Permit”),
b) which has been registered at the Building Office
c) for which a decision on approval of reconstruction has been issued prior to its completion or
d) which has been permitted ex post.
Subject to the development fee is a building as specified in the above-mentioned points, if new or additional flooring area is created in the above-ground part of the construction.
The following examples are not subject to development fee: maintenance, repair, reconstruction or modernization of a flat building which does not cause change of total floor area of all flats and non-residential areas in the flat building, a small building, a superstructure and an extension with floor area of less than 25 m2, a building or a part of a building of a healthcare facility, used as a nursery school, used for sports purposes, used for purposes of a museum, library, art gallery, etc.
The payer is a natural person or a legal person in a position of a developer for whom a building permit, decision on the approval of reconstruction prior to its completion or decision on building permission ex post has been issued or which as a developer registered the building at the Building Office.
The Development Fee ranks from EUR 3 to EUR 35 per each m2 or a part thereof of the floor area of the above-ground part of the building. The base of the Development Fee is the floor area of the above-ground part of the building in m2.
A municipality can set Development Fee under this Act for a building for which a building permit was issued after the effective date of this Act, however, at the earliest after the Development Fee is established by a generally binding regulation of the municipality.
A municipality can set or change the Development Fee by a generally binding regulation only as of 1 January of a calendar year or if a municipality sets the Development Fee by a binding regulation in 2017, the municipality can set the Development Fee at the earliest on the effective date of the generally binding regulation.
This Act comes into force on 31 December 2016.
It is recommended to monitor generally binding regulations of municipalities published at their web sites in case a municipality decides to set the Development Fee in its territory applicable to your building. If you have any questions or if you need assistance in this matter, do not hesitate to contact us.
