District levy; collection

The administrative districts levy a district levy on their municipalities belonging to the district. In this way, they pass on their requirements not covered by other income to the municipalities belonging to the district.

The basis for calculating the district levy is the levy base, which reflects the financial capacity of a municipality. These are calculated on the basis of the respective tax capacity figures of the municipalities belonging to the district as an indicator of their own tax strength and 80 percent of the key allocations made by the Free State of Bavaria to the municipalities belonging to the district in the previous year.

The district levy is set annually by the district council as a percentage of the levy base. It is levied in equal monthly installments on the municipalities belonging to the district as the parties liable for the levy. The levy rates may only be changed once in the current year. Any increase must be decided before June 1.

If the district levy has not yet been set at the beginning of the financial year, the district may levy provisional monthly installments in the amount of the last monthly installments levied in the previous financial year until the levy is set. Once the district levy has been set for the current year, these provisional payments are to be settled on the next due date.

One twelfth of the annual amount of the district levy is payable by the municipalities belonging to the district on the 25th of each month.

An increase in the levy rates must be approved by the district council before June 1.

• Art. 18 - 20 Bavarian Act on Financial Equalization between the State, Municipalities and Municipal Associations (Bavarian Financial Equalization Act - BayFAG)

• Municipal financial equalization; general information