Will you have to pay property tax on tent halls from 2025?

There is an ongoing wait for the new definitions of building and structure for property tax purposes to come into effect from 2025, which is just a few months away. One group of taxpayers for whom the announced regulations will be relevant are owners of various types of tent structures, such as tent covers, inflatable shells and tent halls.

How are tent halls currently taxed?

The regulations, which are still in force until the end of 2024, do not explicitly state whether and how tent halls should be subject to property tax. Tent covers and inflatable shells, as temporary structures, can today be considered for tax purposes as buildings, as structures or as non-taxable objects – depending on their nature and design.

Controversy in the MF’s first draft

The first draft of the new regulations, which saw the light of day in June this year, stipulated that tent coverings and inflatable shells would be explicitly mentioned in the definition of a structure. With the draft’s assumed priority of qualification of a structure over a building, this would have meant that tent halls would be taxed on their value from next year. Such a state of affairs would not necessarily mean an increase in the tax burden. Taxpayers who currently report their tent halls as buildings could benefit from such a change – provided, however, that the value of the hall is relatively small compared to its area.

What might change from 2025 onwards?

However, the proposed changes included in the draft amendment in June this year concerning the taxation of tent structures will not take effect. Following extensive public consultation, the draft has been substantially modified and the reference to tent covers and inflatable shells has disappeared from the definition of structures. This may mean that from next year, tent halls – if they do not meet the definition of a building in the Local Taxes and Fees Act – will remain outside the scope of property tax. In practice, much will depend on the technical solution used, as well as the approach of the local tax authority.

If you are wondering how the changes to property tax will affect your tax returns in 2025, please contact the experts at MDDP.