Water tax to rise by 35 percent next year in Amsterdam and surrounding areas

The water board tax (waterschapsbelasting in Dutch) in Amsterdam and surrounding areas is set to surge by an average of 35 percent next year, Het Parool reported on Thursday.

This increase will considerably affect the assessed taxes for different households. For instance, a rented house with two or more residents will see its annual tax increase from 323 euros to nearly 440 euros. A private-owned household with a family of four will witness their yearly tax rate climb from 375 euros to more than 500 euros. As for single-person households in rented homes, the current water tax of around 200 euros will rise to almost 270 euros.

The water board tax is a levy that households and businesses have to pay for the cost of water management in their regions. This tax is levied by regional water authorities, or water boards (Waterschappen), which are responsible for managing the waterways, maintaining dikes and levees, and ensuring the quality and quantity of surface water.

The Amstel, Gooi, and Vecht Water Board, which manages the dikes and water quality for most of Amsterdam and its surroundings, relies entirely on water board tax as its income source. The area includes a large part of the provinces of Utrecht and Noord-Holland and a small part of Zuid-Holland, hosting 1.3 million inhabitants.

The Water Board's decision to increase the tax stems from significant financial shortfalls it hopes to offset with heightened tax revenue. It intends to collect more than 307 million euros in 2024, marking a rise of over 27 percent from the 240 million euros collected in the current year.

The financial director of the Water Board Simon Deurlo from the PvdA acknowledged the issue with the current water tax rates, stating that "the honest story is that up until now, the rates have been too low, leading to budget constraints. Our reserves are now exhausted." The Water Board anticipates negative equity of 6 million by the end of this year, marking a drastic downturn from last year's surplus of 20 million.

The board has been grappling with reduced tax revenues for some time now due in part to ICT failures at Waternet, the agency responsible for the administrative implementation.

Deurloo described the situation as bleak last month. In a letter, he attributed the necessity for a tax increase to several factors, including climate change, the construction, and maintenance of levees and other infrastructure, pollution control, and ecosystem protection.

Maintenance of infrastructures like pumping stations, locks, and emergency barriers was frequently postponed. Last year, less than half of all planned investments in the region were realized.