Municipalities in Saxony-Anhalt fear massive losses from property tax reform

Municipalities in Saxony-Anhalt fear massive losses from property tax reform

Sachsen-Anhalt, Deutschland - The property tax reform in Saxony-Anhalt causes discussions and concern among the municipalities. A current survey by the MDR shows that many requested cities and municipalities expect lower income. A total of 218 municipalities were interviewed over the period until June 30, 2025, 142 of which made their assessment. It is alarming that more than half of these answering municipalities already expect significantly fewer income from property tax - a quarter of which even sees serious losses. Preliminary figures from the official cash statistics show that the income from January to March 2025 was reduced compared to the previous year in three quarter of the municipalities.

The City and Community Association confirms that many municipalities can no longer achieve the previously used income from property tax. The aim of the reform was to create a fair distribution of the tax burden on the owners and to modernize the outdated value conditions, some of which still come from the time before the Third Reich. It remains to be considered that implementation of the reform has often not yet been concluded, since the municipalities lack the necessary notices of the tax office.

The challenges of the new regulation

Property tax primarily affects the owner, but can also be passed on to tenants. Many municipalities are therefore worried about their financial scope. Bernward Küper from the Association of Cities and Municipalities is expressed that fewer income would be manageable if other taxes would increase- but this is not the case in the current situation. A significant part of the municipalities faces financial deficits that could significantly endanger the completion of their tasks.

Although some municipalities hope for additional income, this usually happens out of necessity. A fact that almost a third of the municipalities has not yet adapted their lifting rate. Many are waiting for the complete notices to arrive. The adjustments of the lifting rates were actually planned until June 30, 2025 to intercept any calculated losses.

Questions about property tax and tips for those affected

citizens who have questions about the evaluation of their property can contact the responsible tax office in writing. All necessary contact details can be found on the property tax measurement notices or online on the Saxony-Anhalt Finance. In the event of inconsistencies regarding the rate of lifting or the amount of property tax, interested parties should contact the city or municipal administration.

Anyone who has justified objections to their property tax notice should know that they can object within one month of the announcement. In the event of an objection to the property tax notice, there is also one month after the announcement, within which the corrections can be requested. This is particularly important, since the deadline is otherwise rejected as inadmissible. Even after this period, a correction may be possible in certain cases, there should be a value difference of 15,000 euros compared to the established property tax value, which in most cases is rather unlikely. Corrections are usually only possible at the next main festival.