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The Economic Impact of Financing Conservation and ), Restoration I , I I

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The Economic Impact of Financing Conservation and ), Restoration I , I I I . I : I INTERNATIONAL COUNCIL ON MONUMENTS AND SITES I , ICOMOS - CROATIA INTERNATIONAL COMMITTEE OF ICOMOS ON LEGAL, I ADMINISTRATIVE AND FINANCIAL ISSUES Brijuni, May 3 - 6, 2000 I I . ! ! ! THE ECONOMIC IMPACT OF i I FINANCING CONSERVATION AND RESTORATION 1 : . I . I : I I . -------------·------ I ' i ; '. i ! i 1 i I : ' I THE ECONOMIC IMPACT OF FINANCING CONSERVATION AND ), RESTORATION I , I I INTERNATIONAL COUNCIL ON MONUMENTS AND SITES f I ICOMOS- CROATIA 1 I INTERNATIONAL COMMITTEE OF ICOMOS ON LEGAL, ADMINISTRATIVE AND FINANCIAL ISSUES c-, Brijuni, May 3 - 6, 2000 ' ' i' : ' I Bulgaria I i Hristina Staneva and r, i ; Risitza Staneva I , I .L I , ECONOMIC IMPACT OF FINANCING . 1 ' . i ( ! r CONSERVATION AND RESTORATION IN [ : lI ;' REPUBLIC OF BULGARIA ' J i ; INCIDENCES ECONOMIQUES EN MATIERE ! I : DE FINANCEMENT DE LA CONSERVATION ' ET DE LA RESTAURATION DU PATRIMOINE CUL TUREL EN REPUBLIQUE DE BULGARIE . I j I ' J I THE ECONOMIC IMPACT OF FINANCING CONSERVATION AND ! RESTORATION I I , ECONOMIC IMPACT OF FINANCING CONSERVATION AND I RESTORATION IN REPUBLIC OF BULGARIA I . Hristina Staneva I I I DEAR MR.CHAIMAN, DEAR GUESTS, DEAR COLLEGES, i The cultural values in the Republic of Bulgaria and their role for preservation of the I'l , I . national cultural identity are essential factor in the endeavor of the sustainable development of the country. They are also undeniable evidence for our affiliation to the European and World Heritage. The economic impact of financing not only in the field of conservation and restoration, but also in the process of investigation, research, preservation and popularization of the monuments of culture and the museums is a basic premise for the realization of all the L above mentioned activities. According to our legislation this matter is solved by: ' • The Law for Protection and Development of Culture ( Official Journal, NoS0/99) I I • The Law for the Monuments of Culture and the Museums (Official Journal, No 29/ 69 and the last amendment -Official Journal ,No 50/99) I ' I : • The Laws for the State Budget of Republic of Bulgaria, which are adopted regularly each year in the Parliament. The national legislation makes provision for financial and tax concessions for the protection of the cultural heritage, including the restoration and conservation. This financial and tax concessions are regulated by: ti • The Law for the Local Taxatio (Official Journal, No 117/97, alterations in No 71,83, 153/98) " • The law for the Corporate Profits (Official Journal, No115/97, alterations in No 21/98, 153/98, 12/99, 50/99, 51/99, 64/99, 81/99 • The Law for the Profits of Physical Entity. (Official Journal, No 118/97, 72/98, 153/98. I ' This report contains two sections. The first part concentrats on the Economic Impact on Financing Conservation and Restoration. The second informs you about the tax provisions aimed at reducing the financial burden, related with the preservation of our cultural heritage, including the conservation and restoration of our Monuments of Culture. ; \ ' ' 1. Economic Impact of Financing Conservation and Restaration . I II I : I I The development of the relatively new law for Development and Protection of the Culture was inspired by the contradictive circumstances related with Bulgaria's transition to market economy, which tend to create disproportion and instability of the advancement of our national culture. The law was created in accordance with the cultural legislation in Sweeden, France, I I Poland, Russia, Slovakia, etc., as well as with the advice of experts from the I , European Council. In Chapter V of the law, called "Financial Support to Culture", Section 24 establishes a National Fund, called "Culture", which is to be treated as a legal entity. The fund's purpose is to aid the advancement of the culture through appropriation, control, and allocation of funds necessary for the conduct of national politics related to culture. The Fund has the right to possess real property only I through donation or inheritance. The Ministry of Culture is obligated to secure ! ! conditions necessary for the operation of the Fund. The Fund has a body, which contains: Administrative Council; Managerial Council; and Executive Director. The I i funds needed for the operation of the Fund are collected from 14 sources, listed in , I the law. I will name only a few: portion from the income from rents received by Trade Associations with State Participation; taxes and fines according to the Law for Monuments of Culture and the Museums; fines for violation of the Law for ! I Protection and Development of Culture; other sources defined by different Laws; and etc. Defined are the ways to allocate the collected funds, with one portion going to "programs and research, preservation and popularization of the cultural and historical heritage". · Prospects exist for creation of Municipal Funds for cultural activities. This way additional resources will be accumulated, with the purpose of financial support of various cultural activities. Listed in detail are ways to collect and allocate the resources from these Funds. 11 The financing of the Conservation and Restoration is carried out through the annual passing of a Law for the State Budget, which provides for a subsidiary to the 11 Ministry of the Culture specifically for the purpose of Conservation and Restoration. The sums, which the State releases are defined based on careful consideration and outlined request submitted by the National Institute for the Monuments of Culture 11 (NIMC). NIMS prepares the request based on the requests by designated units, which deal with the problems of culture on a regional level, namely the municipal administrations. The Ministry of the Culture annually defends and motivates its I I requests before the Ministry of the Finance, considering the needs for preservation of the cultural heritage throughout the entire country. The Ministry of the Finance designates the necessary means in the Projected State Budget on an annual basis. .I I Another law, which addresses the preservation of the cultural heritage, is the Law for the Monuments of Culture and the Museums (Official Journal, No 29/69, I I including the last addition -Official Journal NoS0/99). Although the Law has been modified and expanded 14 times since its creation, it remains insufficient and , I inadequate to our changed environment. It does not contain mechanisms and modern standards for the preservation of the cultural heritage, conditions and incentives for the acceleration of the private initiative in this field, as well as principles assuring I I I I I the accord with the European Legislature. The Parliament accepted, from the first vote, a Bill, concerning the museums, which provides for a more sophisticated and I contemporary ways of preserving the cultural heritage, including the Conservation and Restoration of the works, specifies conditions improvement of the museums as a public, cultural, and scientific organizations, whose function is to preserve and to guarantee the access of the public to the national exponents of culture. The Bill for I the museums is consistent with the fundamental requirements of International i . Council of Museums (ICOM), the recommendation of the General Conference of UNESCO about the Preservation of the Mobile Exponents of Culture, Maltese Conference about the Protection of Archeological Heritage (1992), the Code of I : Professional Ethics (ICOM, April 11, 1986) Conservator; Restorer - Definition of the profession (Committee for Restoration, ICOM, 1985) . The Bill logically continues and enriches the Bulgarian legislative tradition in the field of protection and preservation of the exponents of culture and the museums, which is among the oldest in Europe. Presently a new Bill is expected to be submitted to the Parliament, concerning the ' ' Monuments of Culture. With the acceptation of these two laws the currently active i i Law for the Monuments of Culture and the Museums will be removed, which as I previously noted is not in accordance with the changed environment in Bulgaria. Therefore we will avoid explaining in detail about the Economic Impact on Financing Conservation and Restoration, concerning the existing Law for the Monuments of Culture and the Museums, since to this day the Law is outdated. We hope, and strongly believe, that the two new Bills, submitted by the Government I t will be an existing fact shortly, and Bulgaria will have a modern legislation in this field. 2.Now we are moving towards the second section of the presentation: • In relation with the Laws for the Local Taxation No tax is imposed on immovable property, which belongs to the Public, tli the State, or to a Municipality. Here we would like to clarify that usually the immovable > Monuments of Culture, as well as the archeological and natural landmarks, are Public and State property. When the Monuments are not owned by the State, but rather by physical or legal entities, the tax due for the property of the Monuments is yielded to the owners of the property under the condition that the means will be used to maintain the Monuments. No tax is imposed also on the immovable property, owned by museums, galleries and libraries . J A tax-break is provided in relation to a second type of tax, namely the inheritance tax. The inheritance tax is forgiven in relation to libraries, musical instruments, ' i : i objects of art, in case the author is the legator himself, some of his heirs or his/her . ' relatives. If it is a lineal inheritance there are no limitations, but for the lateral branch -only to fourth stock. i . ' I I I Ii I 1 I I A tax-break is provided in relation to a third type of tax, namely any tax related to the acquisition of property by cultural or scientific organizations supported by the 11 State Budget, or non-profit legal entity when receiving donations in relation to the purpose of their organization, or donations to community centers, or contributions to the capital of a non-profit organizations.
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