Property tax reform in MV: Will housing soon be more expensive?

Property tax reform in MV: Will housing soon be more expensive?

There is growing concern in Mecklenburg-Western Pomerania that the planned property tax reform could make housing more expensive. The CDU is bringing this issue to the state parliament in the new week and is calling on the state government to take measures to prevent additional burdens on residential properties. Back in February, the mayor of Schwerin pointed out that the reform based on the federal model would lead to a systematic increase in the price of housing, while the property tax burden on commercial properties would fall.

Finance Minister Heiko Geue is checking whether the problem exists nationwide. No results are available yet, but discussions at various levels are being intensified. A decision is expected in the second quarter of 2024. The director of the Association of North German Housing Companies also expressed criticism of the property tax reform. He criticized the fact that profits were being made at the expense of the tenants while at the same time complaining about a lack of living space.

A new method of calculating the value of real estate will be introduced from 2025, which critics say will lead to higher costs for homeowners. A study concluded that the new federal regulations may be unconstitutional. However, some federal states, such as Bavaria, act differently from the federal model in order to avoid higher burdens on residential properties. The CDU points to other countries that have responded with state regulations to avoid this additional burden.