The Hungarian Constitutional Court ruled that a core tax provision levied on local governments with strong financial resources was invalid. This may force the government to reform the system of sending hundreds of billions of forints of revenue to the central government. The court ruled that this method of approving and collecting the so-called solidarity tax violates constitutional guarantees, and local governments are unable to effectively dispute tax obligations and tax amounts through judicial channels. The relevant provisions will expire on December 31, leaving time for legislators to redesign the system.

The Hungarian Constitutional Court ruled that a core tax provision levied on local governments with strong financial resources was invalid. This may force the government to reform the system of sending hundreds of billions of forints of revenue to the central government. The court ruled that this method of approving and collecting the so-called solidarity tax violates constitutional guarantees, and local governments are unable to effectively dispute tax obligations and tax amounts through judicial channels. The relevant provisions will expire on December 31, leaving time for legislators to redesign the system.