Ludwigshafen threatens tax shock: property tax explodes for tenants!

Ludwigshafen threatens tax shock: property tax explodes for tenants!

In Ludwigshafen there are considerable changes in connection with property tax reform. According to Rheinpfalz lead the new regulations to massive problems in the municipalities. In particular, taxes for residential properties increase drastically. The SPD politician David Guthier emphasizes that a fundamental solution is required in order not to burden the citizens alone with the costs. The background to this reform is a judgment of the Federal Constitutional Court, which in 2018 declared the previous unit assessment to be unconstitutional, but not for void. The deadline for the new regulation was set by the end of 2020, with a implementation date by December 31, 2024.

The income generated by property tax is of great importance for the municipalities, since they generate an economic advancement of around 15.5 billion euros and thus represent a central pillar of local financing. Nevertheless, the cities, especially Ludwigshafen, have to deal with increasing debts. A new household was recently adopted, which has a deficit of almost 60 million euros, such as SWR reported.

rising property tax and fees

In Ludwigshafen, property tax B is increased from 540 to 817 percentage points. David Guthier emphasizes that the city will not take up any more property tax overall than before, which, however, unsettles many citizens. The new regulations should come into force in 2025, and the residents must also adapt to higher fees, for example for parking, garbage disposal and waste water disposal. The parking fees in the city center in particular could rise to 1 euro for 20 minutes.

Furthermore, the city council provides for the necessary maintenance and maintenance costs, since more and more mandatory tasks must be managed, the financing of which is not secured. An example of this is the legal entitlement to all -day care from the school year 2026/2027, which brings additional financial burdens.

new construction projects and environmental protection

The city council also decided on a new construction project on Berliner Platz, which provides for a 70 million euro office and business building. This decision was supported by all city councils, apart from four abstentions. At the same time, there is a new building project in the "Im Kappes" area, in which 200 residential units are planned on 10 hectares of arable land. However, these plans are criticized, since a citizens' initiative with around 1,000 supporters demands the preservation of the natural areas.

The German Environmental Aid criticizes the city's sealing balance, which is considered the most sealed in Germany. According to the information, 67 percent are built on by Ludwigshafen, concreted or paved. Building director Alexander Thewalt explains that highly sealed areas cause numerous problems, and the city faces the challenge of managing these areas responsibly.

The property tax reform and the associated challenges require an increased discussion from those responsible and the public. The cities and municipalities need more support from the federal and state governments to compensate for the financial burdens and to secure the quality of life of the citizens. The German Association of Cities and Municipalities (DStGB) has developed information material for this to bring the upcoming changes closer to the citizens, what can be found on the website