Wednesday, October 20

Bø will no longer receive compensation for reduction of wealth tax – E24

The municipality must be prepared to bring the “tax refugees” bill with a new government. This does not scare rapporteur Bø.


In their new platform of government, the Labor Party and the Center Party are in favor of «Failure to compensate municipalities that choose to lower the wealth tax rate».

Nordland’s “tax haven” has attracted a number of wealthy people who want lower estate taxes, including ski hero Bjørn Dæhlie. Now the municipality itself must cover the losses derived from the fiscal measure they adopted in 2019.

The wealth tax consists of two parts, a public 0.15 percent and a municipal rate that is usually 0.7.

Bø cut the municipal share of the wealth tax from 0.70 to 0.20 percent.

The municipality then received a “deficit guarantee” from the Erna Solberg government. In the event of a loss of more than NOK 5 million in lost tax revenue, the Ministry of Local Government had to accept the invoice.

It is this opportunity that the new Støre government will now eliminate.

It will continue as “Monaco of Norway”

– I live with that, says the mayor of Bøs Sture Pedersen (H) to E24.

The mayor is first and foremost concerned that Bø and any other municipality still have a chance to elect a lowered wealth tax.

– It would have been much worse if the municipalities had not allowed themselves to differentiate, he tells E24.

Pedersen is neither surprised nor disappointed that the new government does not accept the bill.

The municipality has been jokingly nicknamed “Monaco of Norway”. Since they took the tax measure in 2019, the “tax refugees” have brought 2.7 billion wealth to the municipality. Bjørn Dæhlie, who has greeted the rapporteur, is among them.

Sture Pedersen himself is clear that the wealth tax no going up in Bø because of this.

He tells E24 that they want to continue at a low rate and have “tax haven” status intact.

– We have no plans to reconsider. We have provided a two or three year perspective on this to test it.

You have not received compensation yet

– The wealth tax cut is about attracting activity, capital and private companies that can create jobs, according to the mayor. In the long term, Pedersen hopes it will prevent loss of income and contribute to population growth.

The mayor is not sure how much the removal of the compensation will cost Bø.

The municipality has not yet received any compensation.

Calculations by KS NRK In 2020 it was estimated that Bø will lose NOK 10 million in tax movement.

Pedersen says it’s hard to answer what the lack of compensation will mean and that they don’t have good enough calculations to date.

– But from the appearance of the known figures, it seems that this is something that the municipality should be able to do.

Critical for compensation

The Labor Party is one of the parties that have been critical, both of the so-called “deficit guarantee” and of the municipalities being able to lower the wealth tax.

– The result for everyone else is less welfare and greater economic differences, Deputy Leader of the Labor Party, Hadia Tajik, told E24 in April.

During its April national meeting, the party decided to withdraw the compensation, which is now reflected on the Hurdal platform, where it is stated that the government ‘inkke [vil] compensate municipalities that choose to lower the wealth tax rate».

– It’s bloody unfair, Labor Party Deputy Leader Bjørnar Skjæran told NRK in April. He noted that the municipalities from which the wealthy moved also lost income.

– It cannot be that other municipalities have to pay for the risk that Bø assumes, although I understand well what Sture Pedersen means when he says that the state has left the districts in recent years.

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