Bø municipality in the far north of Nordland is best known for the wealth tax. In 2019, they cut it sharply and were nicknamed “Monaco of Norway”. The stunt led to several rich people taking their wealth with them and moving north, including Bjørn Dæhlie. It produced results. Figures presented by Statistics Norway today showed that no other Norwegian municipality had a greater percentage increase in income tax than Bø – with 113 per cent. Statistics Norway: Strong growth in tax revenue Record-breaking dividends in 2021 gave strong growth in tax revenue. That’s what SSB writes. Taxpayers in Norway paid 13.7 percent more in personal tax in 2021 compared to the previous year. The increase in personal tax is mainly driven by the fact that the 10 per cent with the highest gross wealth in the population paid 43 per cent more in income tax on ordinary income. Municipalities with a lot of income tax per inhabitant are, for example, Frøya, Bærum and Asker. Bø municipality had the largest percentage growth in income tax of 113 per cent, writes Statistics Norway in a press release. In kroner and øre, this means around NOK 50 million for the coastal municipality with 2,546 inhabitants. – It feels very good, notes Bø mayor Sture Pedersen (H), who remembers well when the municipality was almost in ruins in 2011 and ended up on the Robek list. When rich people take their wealth with them and move to Bø, other municipalities lose tax revenue. The Bø mayor doesn’t think much of that. Bø in Vesterålen has been in the media’s spotlight a lot in recent years. Photo: Jan-Helge Andersen – I don’t have a bad conscience. It is not the case that, for example, Sandefjord has noted that Einar Sissener has paid 5–6 million in tax. The tax system in Norway works in such a way that tax-rich municipalities must remit tax to other municipalities. – Through income equalization, we give most of it away, and they go back to Sandefjord and other municipalities. The Conservative mayor explains the strong tax increase with hard work on many levels. – There are more people who pay tribute to Bø. Not only new immigrants, but also companies have done well and had many assignments. Mayor Sture Pedersen (H) in “Norges Monaco” lured wealthy Norwegians with sharp cuts in wealth tax. – We are going for a tax winner in 2022 as well, he says. Photo: Barbro Andersen Pedersen mentions a new cod slaughterhouse, increased housing construction, construction of a drug addiction clinic and landscape hotel. The latter is the first rich man who moved to Bø, Einar Sissener from Sandefjord, who will build. Free nursery school and low property tax In 2021, 18 people were born in Bø. Only 389 of the municipality’s residents are under the age of 18, according to Statistics Norway. The Bø mayor doesn’t just want wealthy Norwegians. Now he wants to attract the young and promising. Bø is a traditional fishing municipality in the north, but in recent years they have gained more legs to stand on. Photo: Øystein O. Strandback That is why the municipality is introducing free nursery school and subsidies for child births for everyone from the new year – in addition to continuing low property tax. – For me, low property tax and free kindergarten places are two sides of the same coin. Both will contribute to more people choosing to move to Bø so that we can grow the population, says Pedersen. The government lowers the wealth tax: – Welcome after Today, the government-appointed Tax Committee put forward a proposal to reduce the wealth tax itself, both through a significantly increased basic deduction and reduced rates. That makes the Bø mayor smile. It made big headlines when Bø in Vesterålen in 2019 lowered the wealth tax from 0.8 to 0.35 per cent. This caused several kingdoms to report moving to the municipality. Photo: Jan-Helge Andersen – Welcome after. I have tried to talk about tax cuts as a district political measure to get people to settle here, says Pedersen. Last year we paid 13.7 per cent more in personal tax in 2021 compared to the previous year. The increase in personal tax is mainly driven by the fact that the 10 per cent with the highest gross wealth in the population paid 43 per cent more in income tax on ordinary income. The right-wing mayor believes that will cause more riches to flee Norway. Bjørn Dæhlie moved to Bø after the tax stunt. He has since moved out of the municipality again. Photo: Ola Hellnes / news 33 rich Norwegians moved to Switzerland this year. This means that the state will miss out on more than 500 million tax kroner. One of the tax refugees is ski king Bjørn Dæhlie, who left “Norway’s Monaco” after just one year in Vesterålen. – Private business is taxed far too heavily in Norway. We need all types of investors, which is why I regret that they are moving away. He does not think more kingdoms will leave Bø, but fears the migration flow to Switzerland is only just getting started. – I predicted a long time ago that this would happen. My driving force is to make it possible for them to live in Norway. The Minister of Local Government: – Exciting Several Center Party municipalities have been inspired by Bø. Last year, four municipalities considered reducing wealth tax, according to a survey in DN. But several dropped the plans after opposition from the Labor Party. Local Government Minister Sigbjørn Gjelsvik (Sp) describes the recent tax figures from Bø as exciting. – We are concerned with growth and development, and it will be exciting to see if the tax cut in Bø can have a lasting effect. It is very good that municipalities, county councils and we as government are thinking anew to make it easier for more people to settle in District Norway. Then we will see which measures work best. – I am very keen that people should try different solutions around the past. Then it must be up to the residents and the elected officials in Bø which solutions they choose, says municipal minister Sigbjørn Gjelsvik. Photo: Marius Guttormsen / news
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Bø and mayor Sure Pedersen are tax winners in Kommune-Norge – news Nordland
