Steer
Association advises: Wait for a new notice for property tax
On average, it shouldn’t become more expensive, that was the promise of the property tax reform. But many still don’t know how much they have to pay. The homeowners association has advice.
A new property tax calculation will apply from 2025 – but many owners still don’t know how expensive it will be. The Haus und Grund owners’ association therefore advises everyone affected not to transfer any money at the beginning of the year. The old property tax is unconstitutional and no longer has to be paid from January, said association boss Kai Warnecke of “Bild”. “If you don’t have a new property tax notice yet, you don’t have to pay any property tax for the time being.”
According to an evaluation by the association, around two thirds of the owners and landlords have not yet received any notice from the authorities. To avoid arguments about possible repayments, you should only pay afterwards, advises Warnecke.
Many municipalities have recently increased their assessment rates
The Federal Constitutional Court had called for property tax reform because property values were currently expected to be completely outdated. In the future, different methods will apply in the federal states. What remains, however, is that the municipalities have the final say with their assessment rates.
There is a political promise that property taxes should not become more expensive on average – but individual owners may have to dig deeper into their pockets while others pay less. In addition, many municipalities have already increased their rates significantly last year.
One of the most important sources of income for municipalities
Property tax is one of the most important sources of income for municipalities. Before the Corona crisis, it covered around 15 percent of its tax revenue, which is then used to pay for roads, swimming pools and theaters. It is an annual tax on the ownership of land and buildings – but a landlord can also pass it on to tenants via the utility bill. How much you pay depends on the property, the building on it and the municipal assessment rate. For most apartment owners it’s a few hundred euros a year, while for owners of apartment buildings it’s often four-digit amounts.
dpa
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
