Positive trend in trade tax, but challenges in income tax

The financial year 2024 appears to follow a “normal budget course” for the municipality of Peißenberg. At least that is the assessment of treasurer Michael Liedl in his interim report on the implementation of the budget. The trade tax is currently above the target. However, when it comes to income tax, people are slightly behind.

Peißenberg – “There are three phases in municipal finance – namely budget planning, budget execution and accounting,” explained Michael Liedl at the most recent meeting of the local council. The market is currently in “Phase 2”. For a few years now, it has been customary for Liedl to present an interim report on budget implementation after the summer break. “It’s just for informational purposes,” emphasized Liedl: “Nothing dramatic happened.”

When it comes to “trade tax”, the treasurer spoke of a “pleasing development”. As of now, income of just over four million euros has been recorded. The budget was calculated with an estimate of 3.6 million euros. But there is no reason to be euphoric.

Peißenberg’s trade tax revenue is far too low compared to other municipalities and is the reason for the municipality’s overall weak tax capacity. And even the four million euros are by no means securely pocketed: “With one or two tax assessments, everything can change again,” says Liedl.

Budget development Peißenberg 2024: Positive trend in trade tax, but challenges in income tax

The largest source of income for the municipality is income tax participation. In this area we are at least competitive compared to other municipalities. In the first half of 2024, the investment will be around 4.3 million euros. That is three percent less than in the same period last year. In the market council, Liedl referred to “one-off effects” and generally “stagnating economic dynamics”. But the federal government’s tax relief package is also making itself felt here. “Whenever we as taxpayers are happy,” says Liedl, the municipalities have to accept losses as the other side of the coin. All in all, the treasurer was still optimistic that the budget estimate (7.8 million euros) can be achieved with the income tax: “I am currently assuming that.”

Liedl also reported that the “continuous growth” is continuing on the expenditure side of the administrative budget. In the case of several coverage rings, it is possible or very likely that the limits are exceeded – including insurance, vehicle maintenance, IT equipment or operating cost subsidies under the Bavarian Child Education and Care Act (BayKiBiG).

Mining museum meets target

Liedl was finally able to report something positive about the “Mining Museum” cost calculator. The increase in the entrance fee meant that around 205 percent of the target revenue had already been met to meet the budget estimate of 15,000 euros. The price increase is also accepted by visitors. Liedl thanked the mining museum friends for organizing the museum operations: “The association does an incredibly good job.”

The increase in usage fees for the deep tunnel hall probably had no impact on the booking response. The degree of fulfillment of fee income (approach: 40,000 euros) was almost 52 percent at the half-year mark. “Apparently no one was deterred,” says Liedl.