Over 1.4 million dissatisfied voices express grievances against property taxes in the southwestern region of Germany - Over 1.4 million objections against the proposed land tax in the south-west region.
Property Owners in Baden-Württemberg Lodge Over 1.4 Million Objections to New Property Tax
Resistance against the recently implemented property tax in the southwestern German state of Baden-Württemberg has been significant, with approximately 30% of property owners challenging the tax assessment, according to an SWR report. This rate put Baden-Württemberg at the forefront of all German states in terms of objections filed.
The Ministry of Finance in Stuttgart reports that a total of 1.4 million objections have been lodged out of nearly 4.8 million cases. In most instances, these objections express doubts about the constitutionality of the new property tax law in Baden-Württemberg, with around 1.3 million classified as mass objections.
In the Ministry of Finance, it is stated that in about 125,000 objections, other reasons were given, such as discrepancies in property size calculations. Nearly half of these objections (56.7%) have already been resolved.
The unique property tax model used by Baden-Württemberg, which takes only the value of the property into account while ignoring its contents, has led to criticism, especially from owners of single and two-family homes with large gardens, who claim that they are burdened with significantly higher taxes.
Court proceedings regarding the legality of the law are currently ongoing before the Federal Fiscal Court. Consequently, the ministry has decided to postpone processing these objections until the ongoing court proceedings are completed.
The first two lawsuits challenging the new property tax were dismissed by the Finance Court of Baden-Württemberg in June 2024. The plaintiffs from Stuttgart and Karlsruhe, supported by the Taxpayers' Association and the Association of House & Ground, then decided to appeal before the Federal Fiscal Court.
The property tax model varies across German states. Most states, including North Rhine-Westphalia, use the federal model, while others, such as Bavaria, have developed their own models. In Bavaria, for example, the property tax is calculated mainly from the area of the property and buildings. It is said that around 1.3 million objections have been lodged in Bavaria, with the objection rate currently standing at around 11.3%.
- The ongoing resistance against the new property tax in Baden-Württemberg is not limited to objections on tax assessments, but also includes concerns about the constitutionality of the employment policy within the property tax law.
- The high rate of objections in Baden-Württemberg has prompted businesses and policy-and-legislation stakeholders to closely watch the court proceedings, as the outcome could significantly impact the state's employment policy and the general news regarding property taxes.
- Politics surrounding the property tax issue extends beyond Baden-Württemberg, as other German states like Bavaria, with their own employment and property tax policies, are taking note of the opposition and the ongoing court proceedings.
