Euskirchen introduces new property tax rates: What does that mean for you?

The city of Euskirchen recently introduced a new system for property tax B that provides for differentiated lifting rates. This decision was made by the city council on the recommendation of the administration and came into force on January 1. The rate for residential plots rose from 496 to 497 percent, while the rate for non -residential property was raised from 496 to 914 percent.

Background of this reform is a judgment of the Federal Constitutional Court in 2018, according to which the property tax evaluation system was declared unconstitutional. The previous unit values ​​that were the basis of the calculations were based on outdated property ratings from 1964 in West Germany. Commercidists Klaus Schmitz pointed out that this system had led to unjust tax burdens, which is why a reform of the property tax values ​​is necessary. The individual property tax is composed of the property tax value, the tax measurement number and the rate, whereby a higher rate is not necessarily connected to a higher tax load.

Legal challenges and reactions

The implementation of the differentiated lifting rates is considered risky because there are different legal reports for the introduction. These reports range from the assessment that there are no significant constitutional risks with a load difference of less than 50 percent, to those who consider differentiation to be legally insecure.

CDU city councilor Franz-Josef Mauth expects numerous appeals against the new tax notices, while SPD parliamentary group leader Michael Höllmann pointed out that both "losers and winners" can be expected among the owners. The Greens also call for an annual re -evaluation of the lifting rates to protect justice. CDU boss Klaus Voussem also expressed concerns about the legal uncertainties that could arise for the municipalities, while Manfred Van Bahlen criticized the FDP that the municipalities had to bear the consequences of the reform.

Another aspect of the reform was treated in Schwelm, where the property tax will be charged on the basis of the new law from January 1, 2025. The property tax reform law, which was passed in 2019, obliges the owner to electronically transmit the property tax value to the tax office. Different regulations regarding the lifting rates are possible via a country opening clause, but so far North Rhine-Westphalia has not made any use of it.