Dispute over property tax: City representatives are deciding decisive choice!

Dispute over property tax: City representatives are deciding decisive choice!

Kaiserslautern, Deutschland - The property tax reform is currently causing great uncertainty in Kaiserslautern. On November 28, 2024, the city decided to reject the required increase in property tax B from 610 to 985 percent. Well, on Monday, the city council decided on an unexpected contracting regulation. This could lead to the increase that the increase does not come into force on January 1, 2025, which could have a significant impact on the future financial situation of both tenants and homeowners, such as Rheinpfalz.de reported.

From January 2025, the property tax will be calculated according to a new concept, with various factors such as the size of the property and the type of development play a role. In particular, the introduction of property tax C gives the municipalities the opportunity to determine higher lifting rates for undeveloped land. This reform became necessary because the previous calculations were based on outdated data that went back to the Second World War. The Federal Constitutional Court had decided that the old regulation was unconstitutional, which resulted in a fundamental new regulation, such as Zeit.de informed.

effects on homeowners and tenants

For many homeowners, the new calculation of property tax will have significant financial effects, especially if the undeveloped land will become more expensive. The possibility of transferring the property tax 100 percent to the tenants could significantly influence their additional costs in the future. Rent experts advise you to check the new notices in detail and, if necessary, to raise objections if discrepancies are suspected, which could also increase the pressure on the landlords.

The deadline until the final decision on property tax already stimulates the minds of the affected citizens. While the builders are pushing for clarity, the uncertainty is great. It remains to be seen how these processes will develop until the reform comes into force.