Local Tax: Increase in Vienna in Reduced Form and Postponed to 2026
Specifically, this means that the local tax will be raised from the current 3.2 to 5 percent on July 1, 2026. The next step will follow a year later: from July 2027, it will climb to 8 percent. Originally, a rate of 8.5 percent was supposed to apply from December 1 this year.
Increase in Local Tax in Vienna: Round Table at City Hall
The Chamber of Commerce and the Hotel Association had partly harshly criticized the measure. On Tuesday, a round table with industry representatives took place at City Hall. After weighing the opinions, relief measures are now being implemented, Novak emphasized after the meeting in a statement sent to the APA. The goal was to find a sustainable path that meets the interests of all parties involved.
"We have found a fair solution through dialogue, which particularly benefits already booked trips. This facilitates the implementation of the regulation for companies, especially with regard to congress tourism or the Eurovision Song Contest. Reliability and contractual fidelity are untouchable cornerstones that secure Vienna as an economic and tourism location," she stated.
At the same time, she emphasized the importance of the fee. "More than 80 percent of our overnight guests come from abroad. Tourists must also contribute, as the costs for infrastructure and services have increased." The revenue from the local tax would finance, for example, the surface design in front of each hotel, green spaces, or public transport.
Division Chairman: Winter Season Saved
Dominic Schmid, the chairman of the Tourism and Leisure Industry division in the Vienna Chamber of Commerce, expressed satisfaction: "The most important thing is that the upcoming winter season is saved and that the Viennese hoteliers do not have to bear the costs of the local tax increase, which would have happened with an earlier increase." The phased plan keeps Vienna competitive as a destination.
ÖHV Vice President Alexander Ipp also spoke of a "good agreement" in a reaction. It shows that there is understanding for the other side. "We in the hotel industry are aware of the tense budgetary situation of the city of Vienna. Conversely, it would have been too much to burden the businesses to the extent that was planned." The timeframe for implementation would also have been difficult. "What we have now achieved together is presentable, and we are glad that it worked out."
Simplification Sought
NEOS councilor Markus Ornig also reported on a constructive and factual conversation. "It is a good solution because we have managed together to ensure that everyone contributes."
It was also agreed to advance the simplification and debureaucratization of the billing of the local tax. Proposals for this are also being implemented, it was said.
(APA/Red.)
This article has been automatically translated, read the original article here.