Document 298 - Amendment to the Act on the Budgetary Allocation of Taxes

Scope: Sections 2–6; pages 1–2.

The bill introduces a new non-earmarked tax revenue for municipalities and regions based on the living area of newly completed apartments. Municipalities are to receive 3,000 to 4,000 CZK per m², regions 500 CZK per m², and Prague 5,000 CZK per m², with Prague transferring a portion of these funds to its city districts. Funding will be shifted from VAT revenue, which will reduce state budget revenue and is intended to incentivize local governments to build housing; the first payments are expected in 2028 based on apartments occupied in 2027. The strikethrough in the text refers to the formal title and article designations, not to the substantive rules of the proposed mechanism.