The collapsing tax revenues are a catastrophe for the budgets of the cities and municipalities, said the chief executive of the City and Municipal Association of North Rhine-Westphalia, Bernd Jürgen Schneider, of the "Rheinische Post" (Friday edition). "At least for 2020 we will remain able to act," said Schneider, referring to the emergency aid from the federal and state governments, for which the cities and municipalities are grateful - but the funds are also urgently needed.
“And in the following years, too, the municipalities are reliant on substantial relief.” In view of the figures from the tax estimate, one must expect that there will be even stronger slumps in 2021 and 2022, both in terms of trade tax and the municipality's share of income and sales tax . “Here, too, it will not work without help from the federal and state governments.” Helmut Dedy, managing director of the City Council of North Rhine-Westphalia, also called on the federal and state governments to provide more support. “In the coming year, more than six billion euros will be missing from municipal budgets nationwide in terms of trade tax. That is why we need help from the state and also from the federal government for 2021 and 2022, ”said Dedy of the“ Rheinische Post ”. It's about the municipalities' ability to invest. If cities had to cut their investments, a rapid economic recovery would be almost impossible.
"For this year, the loss of trade tax - the most important municipal tax - will be compensated." That helps and stabilizes. "So that cities can continue to invest in schools, day-care centers or digitization, we would like this help for the next two years," said Dedy, pointing out that the municipalities are the most important public investor. “You invested a total of 4,6 billion euros in NRW last year. Many orders for the trades and the regional economy depend on this. "