A group of Danish mayors is calling for action from the politicians in the Danish Parliament (Folketinget) to address a significant financial loss that their municipalities are facing. In a letter obtained by TV 2 Øst, the mayors of Næstved, Frederiksberg, Holstebro, Stevns, Hvidovre, and Faaborg-Midtfyn are making a joint appeal to the government.

The cause of this financial challenge is a statutory cap on property tax rates (grundskyldspromillen), which the mayors believe has been set on an incorrect basis. The issue arises because this cap has not been adjusted in line with significant drops in property valuations. As a result, homeowners are receiving tax reductions, leading to considerable loss of tax revenue for the municipalities.

In the letter, the mayors emphasize that this financial imbalance threatens the municipalities’ ability to maintain their welfare commitments. “Welfare will suffer if there is no stable solution,” they write, pointing out that they will need to introduce temporary compensations to cover the losses in property tax for the current budget year. In the long term, they are demanding a permanent solution by 2026 that stabilizes the financial realities.

Overall, the municipalities are facing a loss of 217 million Danish kroner (approximately $31 million USD) due to the fixed property tax cap and the altered property valuations. The letter has been sent to Ministers Jeppe Bruus, Sophie Løhde, Nicolai Wammen, and Prime Minister Mette Frederiksen. So far, there has been no response from government representatives, according to TV 2 Øst.