Local councils should have more powers to raise taxes and everyone, not just home owners, should pay property tax, a local authority commission is recommending.

The commission, headed by Alexander Rinnooy Kan, says the changes would allow national taxes be reduced and reflect the transfer of powers from national to local government.

For example, councils rather than central government are now responsible for youth services, long-term care and reintegrating the unemployed into the workforce.

Currently only property owners have to pay tax based on the value of their property, known as ozb, which is a major source of local council income. However, this should be extended to tenants as well, the commission says.

In addition, councils should be given the power to levy an extra tax on all residents, the commission says. This would reflect the shift in responsibilities.

Optimism

The commission was set up by the local authority association VNG and its recommendations presented at its annual congress on Wednesday.

Rinnooy Kan told the Financieele Dagblad he is optimistic that the changes may be made. ‘There is broad support for the idea, not just at a local level but also among  national politicians,’ he said.

Tax minister Eric Wiebes is also looking into the idea of giving councils greater tax raising powers, broadcaster Nos says.