Berlin is setting the tone for the brand new property tax: the capital is reducing the evaluation charge | EUROtoday

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BErlin is pushing forward with the brand new property tax. Finance Senator Stefan Evers (CDU) has introduced that he’ll cut back the evaluation charge from 810 % to 470 % from subsequent yr. It is alleged that Berlin was the primary federal state to achieve issuing virtually all property tax valuation notices by the tip of 2023. Consistent motion is now required to keep away from insufferable property tax burdens.

Tax workplaces and municipalities nonetheless have ten months to arrange the brand new property tax, which is able to take impact in 2025. Most states adhere to the federal mannequin, and 5 have to date taken benefit of the chance to enact their very own legal guidelines. With Berlin comes one other one. The Senate desires to introduce the invoice within the House of Representatives within the second quarter.

An announcement from the Senate administration is complicated in a single respect. “The evaluation of all property tax values ​​has shown that the metrics specified by federal legislators in Berlin would lead to a greater burden on residential properties,” is the important thing level. In order to keep away from such shifts in burdens, Berlin is making use of the opening clause and can modify the tax determine in favor of residential properties. “For residential properties the tax rate will be 0.31 per mille and for non-residential properties and undeveloped land it will be 0.45 per mille.”

Another particular function is deliberate

This appears as if the quantity for residential properties could be lowered under the speed acknowledged within the federal legislation, however that’s under no circumstances the case. It works the opposite method round: Berlin desires to introduce a better quantity for non-residential properties and undeveloped properties. The federal charge right here is 0.34 per mille. Owners of residential buildings and condominiums in Berlin can now calculate the brand new tax burden themselves utilizing the next system: property tax worth x 0.00031 (tax quantity) x 4.7 (evaluation charge).

The overwhelming majority of municipalities haven’t but selected the brand new evaluation charge. Local leaders have promised that communities won’t use the chance to complement themselves on the expense of taxpayers. Some states similar to Hesse and North Rhine-Westphalia need to publish revenue-neutral evaluation charges for his or her cities. But the choice stays within the municipalities. Some have raised prematurely.

In addition, the Berlin coalition is planning a hardship regulation “for self-used single and two-family house properties”. Another particular function is deliberate. The property tax for land used for agriculture and forestry (property tax A) is to be successfully abolished by setting the evaluation charge to zero. Bower Pipits would additionally profit from this. This step is justified by the low significance of agriculture within the German metropolis.