Heilbronn raises the alarm: Property tax for farmers is now drastically increased!

Heilbronn raises the alarm: Property tax for farmers is now drastically increased!

A significant cut is facing the farmers in Heilbronn: The municipal council has decided to drastically increase the rate of property tax A that affects agricultural areas. From January 1, 2025, it will increase from currently 330 to a whopping 590 percent of the property tax measurements. This rethinking was made on the basis of the technical requirements of the municipal data center, which required a timely coordination so that the notices for property taxes A and B can be sent at the same time, such as Voice.de reported. The city of Heilbronn is hoping for significant income from these increases, which are essential for the urban budget. For 2024, the city is planning income of around 32.2 million euros from both types of property taxes, whereby 225,000 euros only amount to property tax A.

reform and its effects

The decision to increase the rate of lifting is part of a comprehensive reform of property tax legislation in Germany, which requires a new evaluation of the lifting rates. This has advantages and disadvantages for property owners, since the tax burdens can differ significantly depending on the type of property and use. According to the city's authorities, so -called "stress shifts" can occur from 2025, which means that some owners have to pay higher taxes than before, while others could benefit. This assessment is based on the judgment of the Federal Constitutional Court of 2018, which has declared the old property tax law as unconstitutional

Another aspect of this reform is that cities and municipalities are not legally obliged to reduce or keep their property tax rates. As FinanzTip , municipalities have the right to make their lifting rates autonomously, which means that they can also increase the overall income from the property tax if they consider this necessary. The influence of these new regulations will be shown in the coming months when more details on the lifting rates from other cities and regions become known.