The property tax reform in Germany has led to a veritable "tsunami of objections" at the tax offices. Owners and tenants of around 36 million properties are concerned about the expected drastic increase in property tax. In view of the lack of transparency and regional differences in the calculation, over 1.3 million people have already lodged appeals against the new assessments.
The shock of the new calculation - disagreement and lack of transparency
In Berlin, for example, an owner was upgraded from an annual property tax payment of around 220 euros to 901 euros - four times as much. However, there is great uncertainty as to whether this drastic increase is really justified. Taxpayers complain about the lack of transparency and the difficulty of determining the tax burden themselves on the basis of the available documents.
A "tsunami of objections" overwhelms the authorities - workload increases
The German Tax Union speaks of a "tsunami of objections" that is currently overwhelming the tax offices. They receive an average of 50 to 70 appeals every day, which leads to an enormous amount of work. In view of this flood of appeals, there is no end in sight. Many of these appeals could ultimately end up before the Constitutional Court, which initiated the property tax reform decades ago.
Municipalities in financial distress - higher burdens loom
The shortage in many municipalities could lead to an additional burden for taxpayers. Although the reform should be revenue-neutral, it is becoming apparent that many local authorities will urgently need the higher tax revenues. This will lead to a further increase in property tax and further worsen the financial situation of those affected.
Inequality of the calculation bases - problem of regional differences
The inequality of the calculation bases between the federal states leads to further frustration and incomprehension. Seven federal states have their own tax models, while the so-called federal model is used in nine federal states. An important factor in the calculation of property tax in the federal model is, for example, the year in which the property was built. These differences lead to friction and cause further injustice.
Gardens and undeveloped land - equal taxation
Another point of criticism is the equally high taxation of gardens and undeveloped land compared to developed land. This leads to a lack of understanding, especially if the land is used for nature conservation purposes, for example. The fact that theoretical rental income is also calculated for owner-occupied properties increases the resentment of those affected. This rental income often deviates significantly from the actual agreements, which leads to further injustices.
Concern about financial burden and loss of property
In Baden-Württemberg in particular, the so-called "land value model" is causing displeasure. Here, only the area is taken into account with the new standard land values, while the value of the property itself plays no role. As a result, large apartment buildings and villas are subject to the same high property taxes as smaller houses. If local authorities do not reduce the assessment rate, this can lead to enormous financial burdens. Many citizens are worried that they will no longer be able to bear the financial burden or will be forced to give up their properties.
Appeal as a last resort
Against this background, the Taxpayers' Association recommends lodging an appeal against the new property tax assessment notices as a precautionary measure. However, there is only one month to do so after the assessment has been issued. However, experts such as the Federal Chairman of the German Tax Union, Floian Köbler, clearly advise lodging an appeal.
Conclusion: have it checked in any case
In view of the financial burden and potential property losses, it is advisable to consider an appeal against the new property tax assessments. It is to be hoped that those responsible will recognize the current challenges and take measures to ensure a fairer and more transparent property tax.
