Massive objections to property tax reform: Owners defend themselves!
Massive objections to property tax reform: Owners defend themselves!
Baden-Württemberg, Deutschland - In Baden-Württemberg, the property tax reform that has been in force since January 1, 2025 ensures considerable resistance among property owners. About 30 percent of the owners have lodged an objection to their property tax notices, which in absolute numbers corresponds to around 1.4 million objections. Of these, 1.3 million mass appeals are, which are primarily contested by the constitutionality of the new property tax law. This is reported swr.de .
The objections are often motivated by information from the owner association Haus & Grund, which has provided a sample form. The reform itself ensures that only the value of the property for the tax calculation counts, which leads to higher payments for owners of single and two-family houses with large gardens, which in some cases lead to complaint. So far, 56.7 percent of the objections have been processed, with half of them being decided in favor of taxpayers.
Financial effects and processing of the objections
The property tax reform also has significant financial implications. In the tax offices of Baden-Württemberg, 320 additional positions are provided for processing the objections. Court proceedings to clarify the constitutionality of the new law are currently pending at the Federal Finance Court. In BW, an estimated 5.6 million homeowners are affected, a fact that affects not only the owners but also tenants, since higher costs are often passed on. Municipalities in BW occupy around 1.8 billion euros annually through property tax, these funds flow into the financing of schools, daycare centers and infrastructure projects.
The reform provides for three types of basic taxes: property tax A for agricultural and forestry areas, property tax B for operational and private properties as well as a new property tax C, which provides for higher lifting rates for undeveloped, building-proof plots.
criticism and defense of the new model
The property tax reform is not only controversial, it is also criticized and defended by various associations. On the one hand, critics describe the new value -based model as unfair; On the other hand, experts rate the regulations as constitutional. The model is fair because it reflects different values and layers. More expensive plots are taxed more, while tax reductions for residential uses are sought to promote more efficient development. Supporters such as the tenant association and nature conservation associations support the new system, while lobby associations are demanding an area-based model that could favor expensive layers, such as fm.baden-wuertttemberg.de explained.
Another point of criticism is the alleged lack of transparency of the land standard values, which, according to the expert committees, are determined according to legal requirements and are understandable for citizens. It is also argued that preventive objections often aim at the unconstitutionality of the property tax model, whereby no case is known in which one tax has been canceled retrospectively and therefore no financial repayments are expected.
future developments
The reform became necessary after the Federal Constitutional Court in 2018 found a fundamentally unconstitutional assessment of property tax. A next main assessment of the property tax values is on January 1, 2029, and the changes will only be valid from 2025 if the municipalities decide on new lifting rates. The new system also has the obligation to ensure that the local umbrella organizations are not expected to increase the amount of property tax.
Baden-Württemberg is now faced with massive challenges that arose from the reform of property tax. Owners and municipalities have to adapt to the new circumstances, at the same time the legal framework for the reform itself is on the brink. While some complaints have already been rejected, it remains to be seen how the legal disputes and public reactions will develop in the coming months.
The fundamental need for a reform and future changes in property tax policy will continue to remain crucial for local financing in Germany, in particular in the light of the current economic challenges, such as the DetailsOrt Baden-Württemberg, Deutschland Quellen
Kommentare (0)