Dutch water boards planning big tax increases next year

Netherlands residents, farmers, businesses, and nature reserve owners can expect hefty increases in their water board taxes next year. The newly appointed water boards plan to pass on at least inflation, with many adding considerable increases on top of that. In many of the 21 water boards, taxes will increase by 10 percent or more, RTL Nieuws reports.

The Amstel, Gooi en Vecht water board takes the cake with a rate increase of about 35 percent. That amounts to an average increase of over 100 euros per year for the 1.4 million inhabitants of Amsterdam, Hilversum, Utrecht, and others. The water board needs the extra money to get its finances in order, absorb the increased personnel costs, and perform the additional work made necessary by climate change. The dykes must need attention to handle rising sea levels, and measures are needed for periods of drought, for example.

The common denominator for all water boards is that they won’t use their own reserves to absorb higher personnel and material costs, according to RTL’s analysis of their financial agreements. And almost all agreements state that the water boards will pass on inflation in next year’s taxes. The CPB currently assumes inflation will amount to 3 percent this year.

Many water boards have already agreed to increase their taxes further to cover other costs. The Drents Overijsselse Delta water board, for example, has a 10 percent increase on average in its budget. Average, because not every group will be equally affected. The BBB-led water board will increase the taxes for farmers much less than those for citizens, companies, and owners of nature reserves, according to RTL.

De Dommel water board in Noord-Brabant plans to hike taxes by inflation plus at least 8 percent. In Friesland, the water board plans an increase of 14 percent on average. In Limburg, they’re still figuring out the exact rates but already know they need a hike of 10 percent hike at minimum.