Whether city tax, culture tax or lodging tax – in a number of cities travelers are asked to pay extra for overnight stays. This is a thorn in the side of hoteliers. After years of arguments, the Federal Constitutional Court has now reached a decision.
Cities and municipalities may demand a so-called bed tax from overnight guests. The local taxes are compatible with the Basic Law, the Federal Constitutional Court in Karlsruhe announced on Tuesday. The encroachment on the freedom of action in the area of property law and on the freedom of hotel operators to practice their profession is justified. The judges of the First Senate rejected constitutional complaints from hoteliers in Hamburg, Bremen and Freiburg. (Az. 1 BvR 2868/15 and others)
The constitutional court explained that it was a question of local expenses taxes that are not similar to federal taxes. So they were issued “according to competence”. The accommodation establishments concerned would not be overburdened as a result.
“Work-related” overnight stays are exempt from tax
Bed taxes are also levied in dozens of other municipalities. Officially, they are called, for example, culture or tourism promotion tax, city tax, lodging tax or overnight stay tax. The basic principle is always the same: Usually, a certain percentage of the accommodation price is due per person and night, usually around five percent. Sometimes a fixed amount has to be paid, for example three euros per night. Here, too, there are variants; in Hamburg, for example, the amount is staggered according to the overnight price.
The background is that hotels were relieved of sales tax some time ago. At the beginning of 2010, the tax rate dropped from 19 to 7 percent. The bed taxes are a reaction of the cash-strapped municipalities. Due to a ruling by the Federal Administrative Court in 2012, “compulsory professional” overnight stays are exempt from the tax everywhere, which primarily affects tourists. The accommodations have the task of collecting and paying off the money.
Bed tax: hoteliers feel disadvantaged
The hoteliers have already defended themselves against the tax in other courts, but without success. In 2015, the Federal Fiscal Court dismissed complaints from Hamburg and Bremen. The hotels see themselves disadvantaged by the expense. However, the constitutional judges consider this to be justified: “A direct survey of overnight guests would not be practicable,” they said. The states would also have legislative competence.
According to the current Dehoga overview, a total of 30 municipalities had a bed tax at the beginning of 2019. The constitutional complaints were directed against the Hamburg culture and tourism tax, the city tax in Bremen and Bremerhaven and the Freiburg accommodation tax.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
