What is the legal basis for the road improvement contribution?
According to Section 6 (1) of the Lower Saxony Municipal Tax Act (NKAG), the city can levy road improvement contributions.
On the basis of this provision, the city council issued the road improvement contribution statutes dated December 18, 2002 in the version of the amending statutes dated September 24, 2003 and May 9, 2005.
At its meeting on 19.12.2018, the Salzgitter City Council passed a majority resolution to abolish the road improvement contribution statutes with effect from 01.01.2021.
Only road expansion measures that were completed by 31.12.2020 will still be subject to road expansion contributions after the abolition of the road expansion contribution statutes. This is because the so-called material obligation to contribute and thus the city's entitlement to contributions arises upon completion of a road improvement measure. A road improvement project is completed when the construction program has been completed and the final contractor invoice has been received by the city.
What are development contributions payable for?
Development contributions are payable for the construction, extension, improvement and renewal of public roads, paths and squares (public transportation facilities).
The levying of development contributions is not considered if development contributions are to be levied (in particular for the first-time construction of attached roads and impassable residential roads).
Contributable expenditure is determined according to the actual costs incurred.
What is meant by the terms "renewal" and "improvement"?
Renewal" means the replacement of a worn-out facility with a new facility of the same spatial extent, the same functional division and the same type of fastening. It is a measure by which a facility that is no longer (fully) functional, i.e. in need of renewal, is restored to a condition that is essentially comparable to the original facility.
Examples
Complete removal of roadways
Replacing paving slabs with interlocking paving stones
An improvement is deemed to have been made if the condition of the road after the upgrade differs from its original condition in any respect (e.g. spatial extent, functional division of the overall area, type of paving) in a way that has a positive influence on its usability.
Examples:
Replacing a water-bound sidewalk with interlocking paving stones
First-time creation of parking areas or cycle paths
What proportion of the costs are to be borne by the residents?
According to Section 4 (1) of the Road Improvement Contribution Statutes, the share of the contributory expenditure (apportionable expenditure) to be borne by all residents is as follows
a) between 50% and 75% (depending on the partial road facility) in the case of public transportation facilities that are mainly used by local residents,
b) between 30% and 70% for public transportation facilities with heavy local traffic (depending on the partial road facility),
c) between 20% and 60% (depending on the road sub-facility) for public transportation facilities that mainly serve through traffic,
d) 50% for pedestrian zones,
e) for traffic-calmed areas between 40% and 60% (depending on the type of road).
How is the apportionable expense distributed?
The apportionable costs are distributed to the properties benefiting from the public transportation system. The distribution scale of the individual property is calculated by multiplying the size of the property (area) by a usage factor that depends on the number of full storeys permitted on the property and the type of use (e.g. commercial use).
The exact details of the distribution rules are set out in §§ 5 and 6 of the road improvement contribution statutes.
When does the obligation to pay contributions arise?
As a rule, the obligation to pay contributions arises upon completion of the construction project and receipt of the last contractor invoice.
If the expansion measure is limited to only one section of the public traffic facility or a partial facility (roadway, parking areas, footpaths/cycle paths, etc.) that can be invoiced separately in accordance with Section 7 of the Road Expansion Contribution Statutes, the obligation to pay contributions only arises with a separate council resolution.
Who is liable to pay contributions?
The person liable to pay the contribution is the owner of the property subject to the contribution obligation at the time of notification of the contribution notice. If the property is encumbered with a heritable building right, the heritable building right holder is liable to pay the contribution instead of the owner. Several persons liable to pay contributions (e.g. spouses) may be held jointly and severally liable; however, apartment and part owners are only liable to pay contributions in proportion to their co-ownership share.
The city cannot take into account any private-law regulations deviating from this (e.g. in purchase contracts).
When is the development contribution due?
The development contribution is due one month after notification of the contribution notice. In order to avoid undue hardship, the city may allow the development contribution to be deferred or paid in installments.
Who provides information?
Of course, this information sheet cannot answer all questions relating to the development contribution. If you have any further questions, please contact the following staff at Salzgitter-Lebenstedt Town Hall in the Contributions, Allocation Service and General Administration Department:
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