Housing prices: City Council criticizes the extra property tax burden on residential properties | EUROtoday

The German Association of Cities blames the federal states for rising property taxes on residential properties from 2025. “We have been warning for a long time that the federal property tax reform will place a greater burden on residential properties than commercial properties in many places from next year onwards,” stated Helmut Dedy, basic supervisor of the German Cities Day, WELT AM SONNTAG. The federal states failed to forestall this shift in burden. The background is the property tax reform with up to date and, in some circumstances, considerably elevated property values, that are included into new calculation fashions.

Residential properties have usually turn into costlier than business properties, Dedy continued. In these federal states that apply the so-called federal mannequin with a crediting of normal land values, the tax burden for the affected property homeowners will increase accordingly. “The federal states could have prevented this systematic additional burden on residential properties as a result of the reform by adjusting the metrics for commercial properties. Unfortunately, only Berlin, Saxony and Saarland have done this so far,” says Dedy. “In the other federal states it is too late to adjust the metrics by 2025.”

When it involves the evaluation fee, nonetheless, there’s nonetheless scope for design. “The determination of the new property tax rates for 2025 must be completed by June 30, 2025.” So the place the tax burden will increase excessively, the municipalities may nonetheless react.

From 2025, a brand new property tax system will apply nationwide. Cities and municipalities are presently beginning to ship out new tax notices. The background to it is a ruling by the Federal Constitutional Court, which in 2018 declared the outdated property customary values ​​that had beforehand been used to calculate the tax invalid.