Timisoara's business community requests official clarification on the withdrawal of the 2025 tax project

TIMISOARA ENTREPRENEURS' MOVEMENT, represented by Mr. Dan Iliescu, as an initiator of business and entrepreneurs from Timișoara,

PATRONATUL HO-RE (HOTELS AND RESTAURANTS) TIMIȘOARA, having its registered office in Mun. Timișoara, str. Romulus nr. 12, county of Timiș, C.I.F. 42672449, No. Registration in the Register of Employers' Organizations 2/06.06.2019, Established by Decision 5752/24.04.2019 of the Timisoara Court, member of the Federation of Employers in the Hospitality Industry in Romania, member of the confederation IMM ROMÂNIA (former CNIPMMR), member of APD Timis, member of OMD Timisoara, represented by Mrs. Corina Macri, Președinte,

CONTACT

the following official requests Timisoara City Hall, Mr. Dominic Fritz, Mayor of Timisoara, and Timisoara Tax Department:

• please inform us, on the basis of Law no. 544/2001 on the free access to information of public interest, the reasons why the draft regarding local taxes and fees for the year 2025 was withdrawn from the agenda of the Timisoara City Council meeting of 12.12.2024, by you.

Specifically, we request the following information:

1.  Official reason for withdrawing the project: The concrete reasons behind this decision.
2.  Ongoing consultations or negotiations: Information about planned discussions with local councillors or other stakeholders to reach consensus.
3.  Clarifications on the proposed additional quota of 1.3%: We ask for your response on the exceptional condition for the year 2025 that justified the proposal to increase the maximum tax of 1.3%, as provided for in the Tax Code. Also, please let us know if you have changed your position in the sense of eliminating this additional rate, in the context that there are other cities the size of Timisoara that have set a tax of 0.2% for Non-Residential Buildings, i.e. 10 times lower than the one you have proposed for the year 2025 in Timisoara.

This request is made in the interest of providing transparent information to citizens, given the direct impact that these taxes have on individuals and legal entities in Timisoara. We ask you to respond promptly, given the high interest of taxpayers in Timisoara.

• In the context of the discussions on taxes and levies for individuals and legal entities, we kindly ask you to communicate to us, on the basis of Law 544/2001 on free access to information of public interest, the exact details of the estimated budgetary impact of RON 70 million, recently mentioned in public statements made on your official Facebook page. We request the following information:

1.  Methodology used to calculate the budgetary impactSteps and data used to arrive at this estimate.
2. Categories of taxes included in the calculation: Details of each tax category (residential, non-residential, etc.) that has been taken into account.
3. Comparative estimates: The actual amount of revenue generated by these taxes in the local budget for the year 2024 compared to the estimate for the year 2025.
4. Impact on each category of taxpayers in 2025 compared to 2024: A detailed estimate of the effects of a tax of 0.08% on residential buildings/property and 1.3% on non-residential buildings/property and vehicles respectively, according to the publicly mentioned tax rates.
5. Viewpoint on taxes in Cluj and Iasi for 2025: We also ask you to give an official point of view on the fact that the taxes for residential buildings in Cluj and Iasi for the year 2025 are 0.2%, i.e. almost 10 times lower than in Timisoara.

This request is made in the interest of transparent information to citizens and to clarify the details of the local budget. The reason for the request is the need to clarify this information both for personal and practical use, as well as due to publicity discussions and the high level of interest shown by citizens. In this regard please respond promptly. 

• Request for public information on amounts collected, tax rates and impact analysis according to Law 544/2001 for access to the following information of public interest:

1.  Amounts collected from residential property taxes in Timisoara municipality, for years:

• Total collected 2018:
• Total collected 2021:
• Total collected 2023:
• Total collected 2024 (to date).

2.  Amounts collected from non-residential property taxes in Timisoara municipality, for years:

• Total collected 2018:
• Total collected 2021:
• Total collected 2023:
• Total collected 2024 (to date).

3. Tax rates applied for residential and non-residential properties in the same years (2018, 2021, 2023 and 2024).
4. Fiscal impact for 2023:

• What would have been the amount collected in 2023 if the non-residential property tax had been calculated at the rate of 1.3%, without the additional rate of 50%?

5.  Residential buildings scenario for 2023:

• How much would have been collected in 2023 for residential properties if the tax had been calculated at the legally allowed minimum of 0.08% and how much less would the City of Timisoara have collected.

6. Budget impact for 2025 and 2026:

• Assuming that the additional 50% increase rate is not approved for 2025 and the non-residential tax will be 1.3%, please indicate what budgetary impact you estimate for this scenario and how you have calculated this impact.
• Please also indicate what the budgetary impact would be in 2026 if the tax on non-residential buildings was set at a rate of 1%.

In the context of the public debate on local taxes and the high interest of citizens and legal entities in Timisoara, this information is necessary for a detailed analysis of the fiscal impact and tax rates.

• Request to provide the following documents related to the City Council's Decision regarding the establishment of taxes and fees for the year 2025, included in the related draft:

1. Background notes used in setting tax rates and criteria.
2. Impact assessments economic and social, if they have been drawn up, relating to the application of the additional 50% rate of tax increase.
3. Social and economic analysis which justify the adoption of this additional quota.

As these documents are fundamental for understanding the criteria established and the impact of the measures adopted, we are expecting, within the deadline stipulated by law, copies of them in electronic or physical format, in the hope of clarifying the issues related to local taxes and fees.

MIT & HORETIM

Yours sincerely,

Timisoara Entrepreneurs' Movement,
Romanian Entrepreneurship Association,
Dan Iliescu,

Employers Ho-re Tim,
Federation of Hospitality Industry Employers,
SME Representative Romania,
Corina Macri,
President

Timisoara,
16.12.2024