Rising property tax in Connewitz: garage owners at the limit!
The Leipzig city council is discussing property tax increases in Connewitz, which will place a heavy burden on residents and garage users.
Rising property tax in Connewitz: garage owners at the limit!
The new property tax, which came into force at the beginning of the year, caused quite a stir in Leipzig. It replaces the outdated standard values with current standard land values, which poses new challenges, especially for property owners. Some, like members of a garage community in Connewitz, are experiencing drastic tax increases, up to a doubling or even a thirteen-fold increase.
At a city council meeting, Dirk Franke, a representative of this garage community, reported on the increased financial burden that residents have to bear. Enrico Taubert, also a member of the community, questioned the high value of 270,000 euros for a small garage at the meeting. Finance Mayor Torsten Bonew pointed out that the city was not responsible in this matter; instead, responsibility would lie with the tax office. It is the values from property sales in previous years that determine the current land values.
Reasons for the change
The changes in the real estate market, especially since the financial crisis of 2008/2009, have led to many investors investing more in real estate. This not only caused prices in Leipzig and Connewitz to rise, but also increased rental prices. Gentrification forces many residents to leave their usual residential areas. Residents in Connewitz are now faced with the question of whether they can afford the increased property tax.
Land reference values that are used to determine the property tax value are not the same as standard values. The property tax value is determined by various factors, including the size of the property, location, land values and special features such as building restrictions and type of use. This value, which is updated regularly, serves as the basis for property tax.
Outlook for Connewitz
The garage property at Ernestistrasse 30 is designated as residential building space in the land use plan, which theoretically offers the possibility of building a residential building there. However, a change to the land use plan by the city council is considered unlikely. The constantly rising purchase prices for properties in Connewitz are further complicating the situation for garage owners.
Mayor Bonew made it clear that the environmental protection statute was not responsible for these price increases. Strong demand from wealthy investors is driving up real estate prices. Enrico Taubert was critical of the finance mayor's statements and sees it as necessary to discuss the issue further in the city council. Residents' concerns about future developments and the associated financial burdens therefore remain.
In summary, it can be seen that the new property tax regulations have a major impact on owners. The structure of the real estate market in the region is also leading to profound changes that not only affect Connewitz's garage owners. In this context, the question remains as to how the situation will develop and what solutions can be found for the citizens affected.
The developments surrounding property tax and its calculation were discussed by LIZ reported. Further information on property tax value is available here Land reference values Germany to find.