Local governments - Lorz offers suggestions on property tax pricing.
How much will property owners have to spend following the property tax reform? This question is linked to the unique surcharges each city or town can implement. Hesse's Finance Minister Alexander Lorz (CDU) will put forward suggestions for cities and municipalities on Thursday (9:30 am) in Wiesbaden. Starting in 2025, property tax reforms will be carried out throughout the nation, and new calculation bases will be in place. The underlying goal is revenue neutrality—a city or town should collect roughly the same amount of property tax with the new legislation as in 2024.
To prepare for the reform, property owners had to submit property tax declarations with various details. It's anticipated that municipalities will adjust their surcharges coinciding with the reform. In German law, the surcharge is the term used to describe a multiplier applied to the tax base to establish the tax obligation. In Germany, a surcharge is featured in both business tax and property tax.
