Grindavík residents’ registration changes may require state funding, says committee chair

The Chair of the Grindavík Committee suggests that changes in residents’ registration for Grindavík could require financial assistance from the state. He understands the position of municipal leaders from Reykjanesbær and Vogar that it may be time for those Grindavík residents who have moved to those municipalities to officially register their residence there. However, the situation remains complex and without precedent.

In recent weeks, mayors from the Suðurnes region have stated that the special exemption allowing Grindavík residents to register their addresses in other municipalities should be lifted, as many continue to maintain their official residence in Grindavík. By doing so, individuals pay taxes to the municipality where they have their legal residence while receiving services from wherever they currently live.

Árni Þór Sigurðsson, the committee chair, acknowledges the mayors’ concerns, noting the usual principle that people reside officially in the municipality where they have their permanent residence. However, he emphasizes that the circumstances are exceptional and there are no legal guidelines outlining how to navigate such a situation.

The committee must ensure the operation of Grindavík’s essential services while also managing the services that residents are receiving from other municipalities. This situation may indeed necessitate state funding. “It is accurate to say that these are two significant challenges we must address and find solutions for,” Sigurðsson said.

Future meetings are planned with representatives from Grindavík, the Equalization Fund for municipalities, local municipalities, and the government. Sigurðsson added that it was not automatic that the committee would propose solutions, highlighting the collaborative nature of the endeavor. He confirmed that legislative changes would be required to resolve this matter effectively.