Criticism of the federal model: property tax based on land values ​​is inaccurate and not very comparable

Criticism of the federal model: property tax based on land values ​​is inaccurate and not very comparable

According to a report by www.chip.de, there are criticisms of the federal model for calculating property tax. Particularly controversial is the assessment based on standard land values, which the plaintiffs consider to be inaccurate. This criticism could have far-reaching effects on the real estate market and the financial industry as a whole.

According to the report, the standard land values ​​have “systematic assessment gaps” because, for example, areas are shown as being buildable even though they are not developed or cannot receive a building permit. In addition, the standard land values ​​across Germany are not very comparable, which leads to unfairness in tax calculations. An example of this is the discrepancy between the land values ​​in Berlin-Neukölln and Wannsee as well as in Mainz-Weisenau and Hasenstock.

If the plaintiffs are right in their criticism and the federal model for calculating property taxes is changed, this would have a significant impact on the real estate market. In particular, regional differences in standard land values ​​could lead to adjustments in the taxation of real estate. This could also lead to a revaluation of real estate and, as a result, to changes in the financing of real estate purchases.

Overall, criticism of the federal model for calculating property taxes could contribute to increasing legal certainty and fairness in the real estate market, but any changes would have to be implemented carefully and carefully in order to avoid long-term negative effects.