Salzburg plans to exempt 9,000 businesses from tourism levy

Salzburg plans to exempt around 9,000 businesses from the tourism levy under a proposed amendment to the state’s Tourism Act, ORF reports. The state government intends to pass the measure in the state parliament next Wednesday.

The change would introduce a 50-euro exemption threshold. Businesses whose calculated levy is below that amount would no longer have to pay; currently, a minimum contribution of 25 euros applies. The state says around 6,000 businesses, mostly sole proprietorships, would benefit.

The amendment would also raise the annual turnover threshold for businesses in contribution groups three to seven from 35,000 euros to 55,000 euros. Nearly 3,000 more business owners are expected to be exempt. The threshold would be linked directly to the small-business rule in the Value Added Tax Act.

Tourism associations are expected to lose around 300,000 euros a year in revenue, according to ÖVP parliamentary group leader Hans Scharfetter. The state plans to offset the shortfall by cutting the fee for collecting the levy from 6.5 percent to five percent, citing lower administrative costs from no longer collecting very small payments.

The changes are due to take effect on 1 January.