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Property tax reform: Almost 10% of all notices sent in Hesse are contested
According to a report from www.faz.net, of the approximately two million notices sent for the new property tax in Hesse, around 184,000 were challenged with an objection. A third of these objections are directed against the constitutionality of the new property tax. Many other objections serve to correct incorrect information. The new property tax will come into force from the beginning of 2025. Until then, municipalities will decide which assessment rates they want to apply to determine how much owners will have to pay in the future. The property tax reform became necessary after a ruling by the Federal Constitutional Court. The Hessian property tax law stipulates that from 2025, in addition to the size of the houses and properties...
Property tax reform: Almost 10% of all notices sent in Hesse are contested
According to a report from www.faz.net, of the approximately two million notices sent for the new property tax in Hesse, around 184,000 were challenged with an objection. A third of these objections are directed against the constitutionality of the new property tax. Many other objections serve to correct incorrect information. The new property tax will come into force from the beginning of 2025. Until then, municipalities will decide which assessment rates they want to apply to determine how much owners will have to pay in the future. The property tax reform became necessary after a ruling by the Federal Constitutional Court. The Hessian property tax law stipulates that from 2025, in addition to the size of the houses and properties, the location and use of the properties will also have an influence on the amount of property tax. Property tax is an important source of income for municipalities, with income in Hesse increasing by 100 million euros to 1.3 billion euros from 2019 to 2022.
The property tax reform will potentially have an impact on the market and the financial industry. It is expected that some owners will have to pay a higher property tax, while others will pay a lower property tax. These differences arise from the valuation of the properties based on owner information. The reform is aimed at ensuring revenue neutrality, so that the total revenue from property tax for the municipalities does not change.
It is important that the tax administration stays on schedule so that it can give municipalities a recommendation for assessment rates by mid-2024. This will ensure that the reform is implemented as announced. In Hesse, around 97 percent of property owners have already submitted their declaration, meaning that around 2.8 million properties will be revalued.
Property tax reform is expected to result in changes to costs for property owners, and there may be long-term impacts on property prices and the market in general. However, the exact impact on the financial sector can only be determined once decisions on the assessment rates are made and the new property tax notices are sent out.
Source: According to a report by www.faz.net
Read the source article at www.faz.net