Over a million objections lodged against the proposed land tax in the south-west region
In Baden-Württemberg, a significant backlash has emerged against the newly imposed property tax, as the tax office has reported receiving nearly 30% of all property owners filing objections since its implementation on January 1, 2025. This rate makes Baden-Württemberg a frontrunner in resistance to the property tax across Germany, with 1.4 million objections filed out of 4.8 million cases, as disclosed by the Ministry of Finance in Stuttgart.
Around 1.3 million of these objections express concerns about the constitutionality of the new property tax law in Baden-Württemberg. In Stuttgart's Ministry of Finance, officials said that nearly 125,000 objections encompass other issues, such as disputes over the properties' measured sizes. Over half of the objections (56.7%) have been resolved as of the report.
Baden-Württemberg employs its distinctive property tax model, focusing solely on the property's value, regardless of its contents. This tax strategy has resulted in dissatisfaction among owners of single and two-family homes with expansive gardens, who find themselves paying substantial amounts more. Ongoing court proceedings at the Federal Financial Court are determining the law's constitutional validity. Consequently, the ministry has chosen to defer the processing of these objections until the court proceedings are finalized.
In June 2024, the first two complaints against the new property tax were rejected by the Baden-Württemberg Finance Court. The plaintiffs, hailing from Stuttgart and Karlsruhe, along with the Taxpayers' Association and the Association of House & Grund, subsequently appealed to the Federal Financial Court.
Property taxes vary across Germany. The most populous state of North Rhine-Westphalia, for instance, adheres to the federal model. Currently, there are 1.5 million objections in NRW, according to the Ministry of Finance in Düsseldorf. Nevertheless, the ownership rate is lower than in Baden-Württemberg. In the federal model, assessment is based on land value, as well as the rent of 2022.
Bayern, similar to Baden-Württemberg, has developed its unique property tax model, called the area model, which calculates the property tax primarily from the property area and the building. In Bayern, around 1.3 million objections are currently recorded, as per the Ministry of Finance in Munich. The objection rate currently stands at approximately 11.3% among 12 million notices.
Prices, economic impact, perceived fairness, and transparency could contribute to resistance to property taxes. Constitutional challenges often arise due to concerns about fairness, legal jurisdiction, or procedural issues. To better understand the specific circumstances in Baden-Württemberg, it is recommended to consult local news sources or legal analyses regarding any new property tax laws within the region.
- The discord over the newly implemented property tax in Baden-Württemberg has expanded beyond just finance and business circles, with concerns about constitutionality and fairness gaining traction in other sectors such as politics and general news.
- As the ongoing court proceedings at the Federal Financial Court determine the constitutional validity of the property tax law in Baden-Württemberg, the debate over this issue has also extended to other states, including North Rhine-Westphalia and Bayern, where similar concerns and objections have emerged.
- Crime-and-justice news sources might be covering the growing unrest among property owners in Baden-Württemberg, as some have taken their objections to court in an attempt to challenge the new tax law, with the potential for further legal action depending on the outcome of the federal court proceedings.
