Municipalities in Saxony-Anhalt fear massive losses due to property tax reform

Municipalities in Saxony-Anhalt fear massive losses due to property tax reform

The property tax reform is causing discussions and concerns among municipalities in Saxony-Anhalt. A current survey by MDR shows that many cities and municipalities surveyed expect lower income. A total of 218 municipalities were surveyed over the period up to June 30, 2025, of which 142 gave their assessment. What is alarming is that more than half of these responding municipalities are already expecting significantly less income from property taxes - a quarter of them even see serious losses coming their way. Preliminary figures from the official cash statistics show that three quarters of the municipalities had their income reduced from January to March 2025 compared to the previous year.

The Association of Cities and Municipalities confirms that many municipalities can no longer achieve the usual income from property taxes. The aim of the reform was to create a fair distribution of the tax burden among the owners and to modernize the outdated value relationships, some of which date back to the time before the Third Reich. It remains worrying that implementation of the reform has often not yet been finally completed because the municipalities lack the necessary notifications from the tax office.

The challenges of the new regulation

Property tax primarily affects owners, but can also be passed on to tenants. Many municipalities are therefore concerned about their financial flexibility. Bernward Küper from the Association of Cities and Municipalities comments that less income would be manageable if other taxes increased - which, however, is not the case in the current situation. A significant number of municipalities are facing financial deficits that could significantly jeopardize the completion of their tasks.

Although some municipalities hope for additional income, this is usually done out of necessity. A fact that should not be ignored is that almost a third of municipalities have not yet adjusted their assessment rate. Many are waiting for the complete notices to arrive. The adjustments to the assessment rates were actually planned until June 30, 2025 in order to absorb any calculated losses.

Questions about property taxes and tips for those affected

Citizens who have questions about the valuation of their properties can write to the responsible tax office. All necessary contact details can be found on the property tax assessment notices or online on the website of the Saxony-Anhalt tax office. If there are any discrepancies regarding the assessment rate or the amount of property tax, interested parties should contact the city or municipal administration.

Anyone who has justified objections to their property tax assessment should know that they can lodge an objection within one month of notification. In the event of objections to the property tax value assessment, there is also one month after notification within which the corrections can be requested. This is particularly important because otherwise the deadline will be rejected as inadmissible. Even after this period has expired, a correction may be possible in certain cases if there is a difference in value of 15,000 euros compared to the determined property tax value, although this is unlikely in most cases. Corrections are usually only possible at the next main assessment date.