The recent amendments to the Proposal for Changes to the Law on Real Estate Tax, approved today by the Parliamentary Committee on Economy, hold significant relevance for all 25 municipalities in Montenegro, as stated by Mišela Manojlović, Secretary General of the Union of Municipalities (ZOCG).

These amendments were crafted by the Union of Municipalities and put forth by MPs Nikola Camaj, Artan Čobi, and Ilir Čapuni.

The ZOCG pointed out that passing these amendments in parliament would effectively tackle the issue concerning the collection of real estate tax on buildings that are still under construction, as well as others. This issue arose after the Constitutional Court’s decision in late April to repeal part of the Law on Real Estate Tax addressing the taxation of buildings under construction.

The ZOCG clarified that a declaration of unconstitutionality regarding these provisions would require municipalities to halt current tax collection processes and would leave them with no legal framework for initiating new ones.

“This situation would provide an opportunity for certain law firms to request changes to decisions and claim multi-million-dollar amounts from municipalities,” warned the ZOCG.

Manojlović highlighted the urgency of the situation, explaining that the ZOCG had requested a review by the Constitutional Court, allowing parliament to promptly amend the law to eliminate the identified unconstitutionality without adverse effects on municipalities.

“This would create an environment where the Constitutional Court might suspend ongoing proceedings, preventing another wave of budgetary outflows similar to those experienced five years ago under a similar scenario,” Manojlović elaborated.

On June 16, the Constitutional Court decided to re-evaluate its earlier ruling regarding the disputed provisions.

The Association of Municipalities swiftly prepared amendments to the Draft Law that thoroughly safeguard the interests of municipalities while ensuring constitutional compliance.

By securing approval in the Committee on Economy, Finance, and Budget, these amendments will become an integral part of the Bill on Amendments to the Law on Real Estate Tax, which is set to be presented to Parliament for consideration.

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