<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The aim of the study was to determine cadastral tax rate calculated on farm assets, which would allow for replacing the current wealth taxes without increasing the tax burden for farms. The research was based on data from FADN (Farm Accountancy Data Network) farms. The method of financial analysis simulation was used. The research shows that the total wealth tax burden related to farm income is small. The taxes are the greatest burden to the income of very small farms whose economic size is between EUR 2,000 and 8,000 annually (7.37%) and farms dealing with field crops (4.36%). Meanwhile, farms dealing with horticulture (0.69%) and poultry production (0.54%), as well as large farms with an annual economic size of EUR 100,000–500,000 (1.93%) and very large farms with an economic size of more than EUR 500,000 (1.13%) currently pay relatively lower taxes. It was also found that significant changes occurred in the structure of farm assets. While in the 1970s the largest share (approx. 84%) of the assets of individual farms at that time concerned buildings, currently the share of buildings in assets decreased to approx. 19%. There is a relatively larger share of buildings in assets among farms specialized in horticulture and poultry amounting to 43.2 and 37.8%, respectively. The research allowed for determining the rate of a possible cadastral tax, while maintaining the current tax burden for farms. The tax rate may not exceed 0.22%. Relating it to the value of buildings, permanent crops, and land, it will not increase the current tax burden for farms.</p>
</abstract>

The aim of the study was to determine cadastral tax rate calculated on farm assets, which would allow for replacing the current wealth taxes without increasing the tax burden for farms. The research was based on data from FADN (Farm Accountancy Data Network) farms. The method of financial analysis simulation was used. The research shows that the total wealth tax burden related to farm income is small. The taxes are the greatest burden to the income of very small farms whose economic size is between EUR 2,000 and 8,000 annually (7.37%) and farms dealing with field crops (4.36%). Meanwhile, farms dealing with horticulture (0.69%) and poultry production (0.54%), as well as large farms with an annual economic size of EUR 100,000–500,000 (1.93%) and very large farms with an economic size of more than EUR 500,000 (1.13%) currently pay relatively lower taxes. It was also found that significant changes occurred in the structure of farm assets. While in the 1970s the largest share (approx. 84%) of the assets of individual farms at that time concerned buildings, currently the share of buildings in assets decreased to approx. 19%. There is a relatively larger share of buildings in assets among farms specialized in horticulture and poultry amounting to 43.2 and 37.8%, respectively. The research allowed for determining the rate of a possible cadastral tax, while maintaining the current tax burden for farms. The tax rate may not exceed 0.22%. Relating it to the value of buildings, permanent crops, and land, it will not increase the current tax burden for farms.

What Cadastral Tax Rate Should Be Imposed on Farm Assets

Department of Finance and Risk Management

Zagadnienia Ekonomiki Rolnej

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"What Cadastral Tax Rate Should Be Imposed on Farm Assets"}

The aim of the study was to determine cadastral tax rate calculated on farm assets, which would allow for replacing the current wealth taxes without increasing...

What Cadastral Tax Rate Should Be Imposed on Farm Assets

Published Online: Jan 24, 2023

Page range: 91 - 101

Received: Jan 20, 2022

Accepted: Mar 31, 2022

DOI: https://doi.org/10.30858/zer/147882

Keywords
farm assets, cadastral tax, tax rate

© 2022 Marian Podstawka, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

What Cadastral Tax Rate Should Be Imposed on Farm Assets

Published Online: Jan 24, 2023

Page range: 91 - 101

Received: Jan 20, 2022

Accepted: Mar 31, 2022

DOI: https://doi.org/10.30858/zer/147882

Keywordsfarm assets, cadastral tax, tax rate

© 2022 Marian Podstawka, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
farm assets, cadastral tax, tax rate