Several federal states want to ensure that the citizens of their municipality find out which assessment rate for property tax would lead to a revenue-neutral result in the course of the property tax reform. This was reported by the “Frankfurter Allgemeine Zeitung” (FAZ) on Monday. In addition to Hesse, North Rhine-Westphalia, Lower Saxony, Brandenburg and Schleswig-Holstein want to take part
The assessment rate is a type of factor that is used to determine some tax levels. In the case of property tax, this rate can vary from municipality to municipality.
According to the federal government, it should be adjusted in such a way that, if possible, neither more nor less income is generated after the property tax reform. However, the amount of the property tax could change for the individual property owners.
Schleswig-Holstein plans transparency register
According to the FAZ, Schleswig-Holstein is planning a transparency register that should show how the municipalities would have to set their assessment rates for 2025 in order to achieve the same level of income as before the reform.
The Ministry of Finance in Hanover announced that Lower Saxony had given its municipalities the task of publishing the tax rate, which would be revenue-neutral, in addition to the rate actually set. Ultimately, however, the decision on the amount of the multiplier is made by the municipality within the framework of municipal self-government.
From 2025 onwards, the new property tax calculation is to apply. The Federal Constitutional Court had demanded this. Because until recently, the tax authorities calculated the value of a property on the basis of completely outdated data. Almost 36 million properties have to be revalued for the recalculation. Property tax is one of the most important sources of income for municipalities.
Editorial office beck-aktuell, July 24, 2023 (dpa).
Related Links
From the beck-online database
Bridegroom property tax reform – of the future diversity of a tax type, DStR 2021, 1330
Hessian Ministry of Finance announces list of assessment rates for revenue-neutral property tax, report from November 20th, 2020, IBRNews 34634
Haus & Grund calls for transparency in property tax reform, report from October 6th, 2015, IBRNews 23496
GdW and DMB on the property tax reform: “A reformed property tax must be revenue-neutral, simple and transparent” report from April 22, 2010, IBRNews 14624