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More than 300,000 appeals against property tax assessments

With a revenue of around 15 billion euros per year, property tax is one of the most important sources of income for local authorities in Germany. Its reform involves a great deal of effort.

Dresden: More than 300,000 appeals against property tax assessments in Saxony. (archive picture)
Dresden: More than 300,000 appeals against property tax assessments in Saxony. (archive picture)

Tax offices - More than 300,000 appeals against property tax assessments

In Saxony's finance offices, a total of 327,163 objections have been lodged against the new property tax assessments. In 18,092 cases, the objections were fully or partially granted, while in 3,015 cases they were fully or partially rejected, according to the Finance Ministry's response to a query from the AfD fraction in the Landtag.

"If an objection is granted, a new assessment will be issued with the corresponding adjustment. The assessment will explain that the objection has been addressed," the Ministry stated.

"The high number of objections shows: The property tax reform is a bureaucratic monster with many injustices," explained AfD deputy Norbert Mayer. For example, factors that reduce value such as unbuildable land or noise pollution are not taken into account. "We consider the land value assessment as an unsuitable basis for valuation." The AfD fraction therefore demanded that property owners be allowed to submit their own valuation reports.

Property tax revenue in Saxony at around 530 million Euro

According to Mayer, it is already foreseeable that the new property tax will not be "revenue-neutral." Instead, it drives up living costs for many, including tenants. "Housing should become cheaper, not more expensive."

Property tax is one of the most important revenue sources in Germany, with an annual revenue of around 15 billion Euro. It is levied on real estate and is payable only by the owners. In the case of rental properties, it can be passed on to tenants as part of operating costs. In Saxony, the revenue amounted to around 530 million Euro last time.

With a ruling from the Federal Constitutional Court, property tax was reformed. In the Free State, approximately two million objects need to be revalued. City and town councils decide on the height of the so-called assessment rates. They are a factor used to determine the property tax.

  1. The AfD fraction in Saxony's Landtag raised concerns about the high number of objections against the new property tax assessments, particularly in light of factors like unbuildable land and noise pollution not being considered.
  2. After an objection is granted in Saxony, the tax office issues a new assessment with the necessary adjustments, explaining that the objection has been addressed.
  3. In response to the AfD's demand, the ministry is considering allowing property owners to submit their own valuation reports for consideration during the property tax assessment process in Saxony.
  4. The BMF (Federal Ministry of Finance) is currently addressing objections related to the property tax reform in Saxony, with over 300,000 objections lodged to date, and some already having been granted or rejected.

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