Hadžići Municipality must return 26,000 KM to Premier Kladionica

The Municipality of Hadžići needs to return slightly more than 26,000 KM to Premier Kladionica based on collected utility fees and associated interest, as this collection has been declared unconstitutional. The Municipality accepts the decision on the refund, but has informed the Ministry of Finance of Sarajevo Canton that the Municipality does not have the necessary funds and will wait until next year to make the payment.

"We inform you that we do not have sufficient planned funds for the refund in the Budget for 2017, but we will plan a special item for the refund to betting shops in the Budget for 2018 and pay those funds then," states the notice signed by the Mayor of Hadžići Municipality, Hamdo Ejubović.

The Municipality of Hadžići - and previously the municipalities of Kakanj, Visoko, Bugojno, Ilidža, and recently the City of Zenica - collected utility fees from betting shops based on the criterion of "type of activity," which the Constitutional Court of FBiH has declared unconstitutional, i.e., discriminatory, in more than 100 rulings.

The Cantonal Court of Sarajevo upheld the lawsuit of Premier Kladionica and ordered that Hadžići must return the money collected as utility fees for the years 2006, 2007, 2008, and 2009, including interest.

"This is just another piece of evidence for all cities and municipalities that intend to cover up their inaction and disorder by taking money from betting shops through unconstitutional decisions on utility fees. The Constitution of FBiH guarantees equality before the law for all legal and natural persons, and the Constitutional Court of FBiH and cantonal courts are obliged to protect that guaranteed equality. Every city and municipality that attempts to collect utility fees in a similar way, considering the discriminatory criterion of the type of activity, will have to return that money, with interest, like Hadžići, Visoko, Bugojno, Ilidža, Kakanj, and many others," stated Premier Kladionica.

Premier reminds that the refund of money is a huge burden for municipalities and cities, which, they point out, is shown by the case of Posušje Municipality, which for almost seven years has not had money in its budget to return 8,778 KM in principal to Premier Kladionica in accordance with the court decision of the Municipal Court in Široki Brijeg from 2011, which, with interest calculated since July 2006, has grown to a total of 25,800 KM.

"Posušje has been waiting for the refund for almost seven years and accumulating interest, which they will have to return sooner or later, because, let's recall, for every year of non-fulfillment of the refund of illegally collected funds, a legal default interest of 12 percent is calculated," state Premier.

The Municipality of Hadžići could face the same problem if it does not return the money as soon as possible.

Premier reminds that a similar scenario awaits Zenica, "which also adopted the Decision on utility fees based on the unconstitutional criterion of the type of activity."

"According to the decision of the Supreme Court of FBiH from April 2010, the decisions have a declaratory character and apply to the unconstitutional regulation in its entirety, i.e., from the date of its entry into force, which means that municipalities and cities will have to return all money collected under these unconstitutional decisions."

Premier Kladionica cites the case of Breza Municipality as an example, where the Court also ruled in favor of the betting shop:

"Since the competent administrative bodies and the first-instance court based their decisions on tariff number 3 of the Tariff of utility fees of the Decision on utility fees, which are not in accordance with the Constitution of Bosnia and Herzegovina, the substantive law was not applied correctly, given that the unconstitutionality of the provisions of the aforementioned municipal decision was established by the aforementioned decision of the Constitutional Court, and since this decision has a declaratory character regarding the determination of inconsistency with the constitution of the aforementioned Decision on utility fees of Breza Municipality, in the opinion of this court, it means that this decision was unconstitutional from its very adoption," states the decision of the Supreme Court of BiH.