General Data
Name of instrument Compensation for use of building land (= Nadomestilo za uporabo stavbnega zemljisca)
Country SI
Spatial level local
Type Economic instruments
Subtype Consumptive fees
Description This compensation is a property tax which is an original and complete revenue of a municipality where this tax is enforced. It is very important income for municipal budgets enabling not only communal infrastructure of building land but also economic and social development. It represents a public fee, defined by the law and regulated in detail by each municipality. It has to be paid by each private citizen and corporate body that possesses or uses only (lends) real estates. The fee is fixed according to several criteria including communal infrastructure (available amenities), distance from the municipal center, accessibility etc. Owners in more peripheral areas pay less in comparison to town people.
General objectives - to enable municipalities to perform active policy of spatial planning
General objectives keywords
Responsible Local authority/Municipal council
Stakeholder Involved Local authority/Municipal council;
Reference It is based on Construction Land Act.
General assessment of strength and weakness strength:
- progressive taxing

- big differences among municipalities
- many property owners are not subjected to taxing
Date of entry 2007/05/04
Legal status mandatory
Extension all municipalities
Comment The idea behind this tax is that property values rises due to investments of others not owners. It is a tax for this "added value".
Type of monitoring none
Preconditions for implementation Each municipality has to adopt a decree about this tax.
General comment
Status very strong relevance
Ranking 5
Ranking 3
Remark presumably lower acceptance by environmental NGOs and maybe municipal residents; if people in the town have to pay higher fees than in more distant areas the fee is not able to steer inner-urban development
Ranking 5
Status Legislation, staff, political will
Ranking 3
Ranking 0
Remark Depending on the objective of the instrument. If sustenance of remote settlements is the objective, then the instrument is effective, if densification and containment of settlements in the rural areas is the goal then the instrument is counterproductive.