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The abolition of the counties had long been an important goal for both the Conservatives and the Danish People's Party.24 June 2004 the Danish People's Party decided to back the government's proposal for a structural reform of the public sector, thus securing a majority in the Danish parliament (Folketing), although the party had preferred just abolishing the counties without replacing them with a new intermediate administrative level (the other two being the central government and the municipalities).

In 2012 this tax was lowered to 7%, 2013 6%, 2014 5%, 2015 4%, 2016 3%, 2017 2%, 2018 1%.

This follows an agreement on taxes by the Folketing from 2009.

Regions are led by directly elected councils ( Elections are held simultaneously with municipal elections every four years.

The latest Danish local elections were held on 21 November 2017.

A central government "health contribution" tax (sundhedsbidrag) which was 8% on the preliminary and final income statement forms when it was introduced from 2007 has replaced most of the county tax (amtsskat).

With income taxes in the lowest bracket being raised 1 percentage point a year, this health contribution tax will be gone by 2019.

Unlike the former counties, regions are not entitled to levy their own taxes.

Thus, the present regions rely entirely on central state funding (around 70%) and funding coming from the municipalities (around 30%).

The counties were financed both through their own county tax and in addition through block grants from central government.

The archipelago of Ertholmene slightly to the northeast of Bornholm is not part of any region or municipality.

They belong to The Ministry of the Interior and Health. These administrations are not subordinate to the regional councils, but rather the direct presence of the state (similar to governorates or prefectures in certain countries).