Best Tax Increment Financing Lawyers in Ommen

About Tax Increment Financing Law in Ommen, Netherlands

Tax Increment Financing, often called TIF, is a tool known from the United States that uses future increases in tax revenue from a specific area to finance current improvements in that area. In the Netherlands, including Ommen, there is no one-to-one legal instrument that exactly mirrors American TIF. Dutch municipalities instead combine several public law and private law mechanisms to fund area development and capture value uplift from new investments.

In practice, Ommen can support area improvements through a mix of instruments such as municipal taxes and levies under the Municipalities Act, cost recovery for spatial development under the Environment and Planning Act, public-private agreements with developers, and zone-based levies on businesses. When people in Ommen refer to TIF, they usually mean a TIF-like package that ring-fences or coordinates local revenue sources such as a business investment zone levy, benefitted area levy, parking income, development cost contributions, or subsidies into an area fund that finances public works. The legal feasibility depends on careful structuring within Dutch public finance, tax, procurement, and state aid rules.

Why You May Need a Lawyer

You may need a lawyer if you want to structure or challenge a TIF-like arrangement in Ommen for reasons such as negotiating an agreement with the municipality to share or recover development costs, setting up a business investment zone to fund area improvements, designing a benefitted area levy linked to public works, evaluating whether a proposed structure risks violating EU state aid rules, tendering rules, or municipal budget law, or objecting to a municipal tax assessment or levy that funds a project you believe you do not benefit from. A lawyer can also help coordinate with lenders and investors who need predictable revenue streams, and can advise on the procedural steps and deadlines under Dutch administrative law if you want to participate in public consultations or file objections.

Local Laws Overview

Environment and Planning Act 2024. Since 1 January 2024 the Environment and Planning Act applies nationwide. It governs spatial planning, permits, and municipal cost recovery for area development. Municipalities can recover the costs of public infrastructure from developers via private agreements before permits are granted or via public law cost recovery rules in the municipal environment plan. If an agreement is not possible, a mandatory cost recovery decision can be imposed when the development is permitted, provided the municipal plan contains suitable rules.

Municipalities Act. Dutch municipalities can levy several local taxes. Key ones for TIF-like design are onroerendezaakbelasting property tax, which is general revenue and typically cannot be legally ring-fenced for a single project, baatbelasting benefitted area levy, Article 222, that charges owners for public works that provide a specific advantage to their property and can be one-off or spread over time, reclamebelasting advertisement tax, Article 227, often used in town centers to finance area promotion via a fund, parking taxes and fees, Article 225, which can be earmarked in policy for mobility and public space improvements, and fees and charges, Article 229, for permits and services. Any levy must be set in a municipal bylaw and comply with principles of legality, equality, and proportionality.

Business Investment Zones. The Business Investment Zones Act allows Ommen to create a zone where businesses pay a mandatory levy if a majority of businesses approve in a ballot. The municipality collects the levy and pays it to a managing foundation or association that implements an agreed activities plan for the zone, typically marketing, security, and public space enhancements in shopping streets or business parks.

Public finance and budgeting. The municipal budget and accounting rules, including the Besluit begroting en verantwoording, limit the ability to pledge specific tax streams to lenders. In practice, long term commitments must be appropriated annually by the municipal council. This affects how TIF-like revenue pledges are drafted. A typical workaround is to channel revenues through a bylaw-based levy such as a BIZ or baatbelasting, or to use a dedicated area fund combined with programmatic budget resolutions.

Procurement and state aid. When public funds support private development, the Aanbestedingswet 2012 and EU procurement directives may require a transparent tender. If public money or guarantees provide a selective advantage to undertakings, EU state aid rules apply. Many area development supports must follow the General Block Exemption Regulation or be notified if thresholds or conditions are not met.

Local application in Ommen. Ommen can adopt bylaws for local taxes, an environment plan with cost recovery rules, and project specific agreements. Whether a TIF-like package is possible depends on the content of Ommen’s environment plan, current bylaws for property tax, advertisement tax, parking taxes, any BIZ bylaw, and the willingness of stakeholders to enter into agreements. The Province of Overijssel may also set policy conditions for spatial projects and co-funding.

Frequently Asked Questions

Is Tax Increment Financing legal in Ommen

There is no single Dutch TIF statute. However, Ommen can assemble a TIF-like structure by combining legal tools such as a business investment zone levy, a benefitted area levy, parking revenues, development cost recovery under the Environment and Planning Act, and subsidies. The structure must comply with municipal tax law, public finance rules, procurement law, and EU state aid rules.

Can Ommen pledge future property tax increases to repay project debt

Directly pledging future property tax increases is generally not allowed. Property tax is general revenue that the council allocates each year. Predictable revenue can be created with instruments like a BIZ levy or baatbelasting if the legal preconditions are met, or via long term agreements and council resolutions. Lenders usually rely on the municipality’s general credit or on bylaw-based levies rather than on a strict property tax increment pledge.

What is the difference between TIF and a benefitted area levy

TIF captures overall tax growth in an area and uses it to finance improvements. A benefitted area levy, baatbelasting, specifically charges owners who obtain a direct advantage from defined public works, such as new streetscape or utilities. The levy must be grounded in a bylaw and comply with strict procedural rules, including timeframes for adoption related to the completion of the works.

How does a Business Investment Zone work in practice

Businesses in a defined zone vote on a plan and budget. If the legal majority threshold is met, Ommen adopts a BIZ bylaw and levies a mandatory annual charge on businesses in the zone for a fixed term. The municipality collects the levy and pays it to a foundation or association that carries out the approved activities, such as area marketing, events, cleaning, or security.

How are public infrastructure costs recovered from developers

Under the Environment and Planning Act, Ommen can sign an agreement with developers to recover costs for roads, public space, water facilities, and social infrastructure. If no agreement is reached, the municipality can secure cost recovery through rules in the environment plan and an individual cost recovery decision when granting the relevant permit. The rules must define which costs are eligible and how they are apportioned.

Can residents or businesses object to a new levy or assessment

Yes. For individual tax assessments, such as property tax or a BIZ levy, you can file an objection within six weeks of the date on the assessment notice. For public law decisions like the adoption of a bylaw or environment plan provisions, participation and review routes are governed by the General Administrative Law Act and the Environment and Planning Act. Deadlines are strict, so seek advice promptly.

Does a TIF-like arrangement change my property tax assessment

No. Property tax assessments are based on the statutory valuation of real estate, the WOZ value. Area improvements may influence market value over time, but the presence of a TIF-like scheme does not by itself alter the assessment method. Separate levies such as a BIZ or baatbelasting are charged in addition to property tax if applicable.

What role does the Province of Overijssel play

The province sets regional spatial policies and may co-fund strategic projects. For major developments, provincial frameworks and subsidy programs can be relevant. The province does not impose or collect municipal levies but may influence planning conditions and funding availability.

Are subsidies available to reduce financing needs

Depending on the project, national programs administered by the Netherlands Enterprise Agency, housing and sustainability funds, or EU regional funds may be available. Subsidies often come with procurement and state aid conditions and cannot replace required cost recovery from developers where the law mandates it.

Which court handles disputes

Tax assessment disputes go to the competent tax chamber of the district court, which for Ommen is the District Court of Overijssel. Planning and environmental law appeals usually go to the administrative law section of the same court, with possible further appeal to the Administrative Jurisdiction Division of the Council of State. Contract disputes arising from development agreements go to the civil courts.

Additional Resources

Municipality of Ommen, Departments of Spatial Development and Municipal Taxes. Contact the municipality for the environment plan, current tax bylaws, and any BIZ or advertisement tax ordinances that may support area improvements.

Province of Overijssel. Regional spatial policy, co-funding programs, and guidance for area development that may affect projects in Ommen.

Netherlands Enterprise Agency RVO. Information on national subsidy schemes for sustainability, energy transition, and area development that can complement local financing.

Ministry of the Interior and Kingdom Relations. Policy and guidance on the Environment and Planning Act and municipal governance and budgeting.

Ministry of Finance. Policy on municipal taxes and local government finance that frames what Ommen can levy and how revenues can be used.

PIANOo, the Dutch Public Procurement Expertise Centre. Guidance on public procurement obligations that can apply when public funds support private works.

Authority for Consumers and Markets ACM and the European Commission. Guidance on state aid compliance for public support to undertakings in development projects.

District Court of Overijssel. Jurisdiction for tax and administrative disputes arising in Ommen.

Next Steps

Clarify your goal. Define whether you want to finance public space improvements, unlock a development site, or fund center management. The legal route depends on the objective and the beneficiaries.

Map the legal tools. With a lawyer, assess the suitability of a BIZ levy, a benefitted area levy, parking revenues, development cost recovery, user fees, and subsidies. Consider creating an area fund to coordinate multiple revenue sources.

Engage the municipality early. Ask Ommen for the current environment plan, any relevant bylaws, and the preferred approach to cost recovery and area management. Early alignment reduces later legal risks.

Screen for constraints. Check procurement thresholds, state aid risks, and municipal budgeting rules. Identify whether revenues can be made predictable enough for lenders without breaching public finance law.

Choose the procedural path. For a BIZ, plan the ballot and bylaw process. For a baatbelasting, plan the works and bylaw within the statutory timelines. For cost recovery, structure an agreement or verify that plan rules can support a mandatory decision if negotiations fail.

Protect your position. If you receive an assessment or a public decision you wish to challenge, note the six week objection or appeal deadline and seek legal help immediately.

Document and negotiate. Prepare financial models, benefit analyses, draft agreements, and governance documents for any managing foundation or association. Ensure transparency and accountability for all funds.

Seek specialist advice. Retain a lawyer experienced in municipal tax, spatial planning under the Environment and Planning Act, procurement, and state aid. In complex projects, add a public finance adviser and a notary for governance structures.