The government will take more from the rich and give to the poor municipalities – NRK Norway – Overview of news from different parts of the country

Did you think the council tax you pay always ends up in your own municipality? The answer is no, and now the government is reinforcing the “redistribution” of the tax you pay.

– Kthe local authorities that have low tax revenues should receive slightly more funds to provide important servicessays municipal and district minister Erling Sande from the Center Party to NRK.

He confirms that the government will move money:

– It is in the nature of the matter that the municipalities that have the most must contribute somewhat more, says Sande.

– We don’t want to show off

The stairs are falling apart, the gymnasium is falling into disrepair and there is mold in the toilets. NRK meets the Mayor of Larvik, Birgitte Gulla Løken (H), at Brunla junior school.

– We’re not going to show off. We simply need money for the primary tasks, nursing home, school and the fact that we can call for a substitute in the nursery, she says.

Larvik has taken the lead in a municipal rebellion. Around 50 municipalities that receive little tax are involved.

– Your address determines the quality of the services you have today, whether it is growing up or whether it is health and care for the elderly. It is not fair, says the Conservative mayor.

Moving billions

The government believes they are responding to the rebellion in the municipal bill. Before the presentation on Tuesday, the Center Party and the Labor Party come out with some of the main points of a new system:

• One «fairer redistribution» of the income between the municipalities.
• The municipalities that are below the national average get almost 2 billion more from tax revenue.
• Poor municipalities will receive tax revenues corresponding to at least 95 per cent of the national average after equalization. Today, those who get at least about 93 percent get it.

– This is not a city-country discussion. For us, it has been important to do something about the tax challenges. There are both small and very large fiscally weak municipalities in Norway. We are now helping municipalities such as Sarpsborg, Eidskog and Skien, says Lene Vågslid, head of the Storting’s municipal committee (Ap).

Don’t cheer

– It’s far too early for me to let loose the jubilation. We need more than 2 billion more if we are to really equalize. But it can be a start, says the Larvik mayor. She will see more of the details coming on Tuesday.

In Oslo, the city council reacts strongly to the new system. They point out that they already pay NOK 8 billion to other municipalities.

– A large part of the tax equalization comes from Oslo, and that is fair, but the limit has been reached. Oslo is not a rich municipality, Oslo has major challenges with living conditions and poverty, says Hallstein Bjercke, city councilor for finance (V).

Local Government Minister Erling Sande confirms that some may end up paying more.

– Does this mean that Oslo will receive less income in the future?

– It will be the case that the municipalities with the largest income, must contribute somewhat more. But it is still the case that the municipalities with the greatest income will be the ones with the greatest income also after this, says Sande.

He emphasizes that the details for the individual municipality will come on Tuesday.