Tax court doubts constitutionality of valuation rules for new property tax

Tax court doubts constitutionality of valuation rules for new property tax

According to a report from www.focus.de, the Rhineland-Palatinate Finance Court doubts the constitutionality of the legal valuation rules for the new property tax. The judicial authority expressed concerns about the realism and fairness of the property valuation. Two applicants were successful in expedited proceedings, which meant that the enforcement of their property tax assessments was suspended. The Ministry of Finance in Mainz wants to examine the decision while the final decision on the constitutionality of the valuation rules is still pending. The new property tax is due to apply from the beginning of 2025 and affects around 2.5 million properties in Rhineland-Palatinate.

The Rhineland-Palatinate Finance Court's doubts about the constitutionality of the statutory valuation rules for the new property tax could have significant effects on the real estate market and the financial sector. If it were to be determined that the assessment rules are actually unconstitutional, this would lead to legal uncertainty and increased bureaucratic effort. The need to revalue around 2.5 million properties in Rhineland-Palatinate would cause immense costs and time.

The fact that almost 280,000 objections have already been received against the notices for calculating property tax in Rhineland-Palatinate illustrates the extent of dissatisfaction and uncertainty among the population. If the new property tax actually applies from the beginning of 2025, there could be a risk of further objections and legal disputes, which would lead to a lengthy and costly matter for citizens and municipalities.

Overall, the situation is very uncertain and unclear, which could cause uncertainty in the real estate market and in the financial sector. It remains to be seen what impact the final decision will have on the constitutionality of the assessment rules.