More Municipalities Want to Recalculate Cadastral Income Themselves: Why Does This Issue Remain So Sensitive in Brussels?

Municipalities across Belgium are taking matters into their own hands, prompting residents to re-evaluate the cadastral income (KI) of their homes. Cities like Leuven and Willebroek are surveying inhabitants about features such as bathrooms, central heating, and swimming pools in an effort to update the KI, which forms the basis for property taxes.

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Municipalities can locally try to update the cadastral income (KI), but the real solution lies with the federal government, which has not fundamentally adjusted the system for 50 years.

The core issue is that the KI system is severely outdated. "The system has not been updated for 50 years," explains Michel Maus, a professor of tax law at VUB. "It is based on rental values from 1975, and should ideally be reviewed every 10 years." This historical disconnect means that the KI often fails to reflect a property's current market value, leading to disparities in tax payments among homeowners.

Data from 2006 already showed significant discrepancies. For instance, the cadastral records indicated only 59% of homes had central heating, while statistical data showed it was 73%. Similarly, the KI suggested 77% of homes had bathrooms, compared to 96% in reality. This inaccuracy means many homeowners pay less tax than they should, directly impacting municipal revenues.

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The system has not been updated for 50 years.

Maus notes that municipalities levy surcharges on property tax, which is directly tied to the KI. "These surcharges account for a significant 47% of total municipal income," he states. The current situation, where the KI doesn't accurately reflect property value, results in substantial revenue shortfalls for local governments, underscoring the urgent need for a federal reform.

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This is a problem for municipalities, because these surcharges globally account for 47 percent of the total income of municipalities.