97 percent of property tax returns submitted
In the struggle to recalculate property tax, 97 percent of property owners in Bavaria have finally submitted their declaration. This figure was given by the Bavarian State Tax Office, as reported by Mediengruppe Bayern (Monday). The deadlines for submitting property tax returns had been extended several times in Bavaria.
The tax offices had already sent out most of the notices, the office announced. Should citizens now find on their tax office notice that they should pay significantly more property tax, the next step would be for the municipalities to react and discuss a possible assessment rate adjustment. "According to the declared political will of the Bavarian state government, the property tax revenue of a municipality should not be higher after the reform than before," said the authority spokesperson.
However, the determination of the assessment rate remains a free decision of the municipalities. "The Property Tax Act specifies neither a minimum nor a maximum percentage for the assessment rate." This has not changed as a result of the property tax reform, the spokesperson for the state office told the newspaper group.
From 2025, property tax in Bavaria will be calculated on a new assessment basis. The background to this is a decision by the Federal Constitutional Court, according to which the previous basis of assessment in Germany is unconstitutional.
Bavaria is using its own model for the new calculation, as the state government found the federal model "too bureaucratic".
While the federal model uses information such as the year of construction and the standard land value to determine the value of the property, Bavaria is implementing a pure area model. The revenue from property tax will remain solely with the local authorities in future.
- Despite the extended deadlines, some property owners in Bavaria might still be lagging in submitting their property tax returns, potentially leading to penalties imposed due to late payment of taxes.
- In the upcoming years, the Bavarian government aims to review the new property tax system thoroughly, ensuring that the collected taxes are in line with the original revenue from before the reform to avoid any significant financial burdens on citizens.
Source: www.dpa.com
