Court strikes down parts of Bregenz second-home levy

Austria’s Constitutional Court has ruled that parts of Bregenz’s second-home levy were unlawful, ORF reported. The city had introduced exemptions not authorised by state law.

The Vorarlberg state law sets out which areas of a second home count towards the levy. But in a 2024 ordinance, Bregenz excluded areas such as communal rooms, stairwells, corridors, garages and cellars. The city also exempted its own buildings from the charge.

The court said municipalities have no authority under the state rules to exempt second homes owned by the local authority collecting the levy. The exemptions lacked a legal basis because ordinances must be made under powers granted by law.

The provisions had since been amended, but the court repealed them because they could still apply to earlier tax cases. The ruling followed a request from the Vorarlberg Administrative Court. The current ordinance still contains some of the same exemptions, including for communal rooms and garages, and may need to be changed.

The Constitutional Court found no grounds to object to the state law itself, saying it did not appear to breach the relevant constitutional rules on financial matters.