Property tax reform is progressing: Düsseldorf-Mettmann tax office reports progress and high user numbers.

Property tax reform is progressing: Düsseldorf-Mettmann tax office reports progress and high user numbers.

According to a report by rp-online.de, the Federal Constitutional Court has declared the legal regulations on property tax to be incompatible with the general principle of equality in the Basic Law. Because of this decision, a reform of the property tax became necessary.

The Düsseldorf-Mettmann tax office is on the home stretch when it comes to implementing the property tax reform. Declarations are available for around 93 percent of the properties in the area of ​​responsibility, and another five percent have been estimated so far. The tax offices throughout Germany are working to ensure that municipalities have the basis for calculating and setting property taxes in 2024.

In recent years, the tax offices have hired around 380 employees for property tax offices across the country. In addition, a property tax hotline was set up and a diverse range of services was developed. In addition, six million information letters were sent to citizens nationwide.

According to the head of the authority, people in Mettmann, Erkrath and Ratingen are particularly online-savvy, as more than 92 percent of property tax returns were submitted online.

The next step is to estimate the vacant land and then the remaining cases. Despite the estimate, the affected persons are still obliged to submit a declaration to determine the property tax values.

The property tax reform has a significant impact on the real estate market and the financial industry as a whole. The reform will change the property tax values ​​of all properties, which may impact owners and landlords. Depending on the level of the new property tax, rental prices for apartments and commercial properties may change, which in turn can influence the real estate market.

In addition to the direct impact on property owners and landlords, property tax reform may also have indirect impacts on the financial industry. Banks and financial services providers may need to adjust their lending practices and risk assessments to reflect changes in property tax values. In addition, real estate prices in certain regions may also change due to new property tax values, which in turn may impact mortgage interest rates and demand for real estate loans.

Overall, the property tax reform is a significant step in the German financial sector and is expected to have long-term effects on the market. It remains to be seen how the new property tax values ​​will affect owners, landlords, tenants and the financial industry as a whole.