Numerous property tax returns not yet received
Months after the deadline, numerous property tax declarations are still missing in Mecklenburg-Vorpommern. So far, just under 693,000 declarations have been received, which is around 98 percent, as the Ministry of Finance in Schwerin announced on Friday.
The original deadline for submitting property tax returns was the end of October last year. However, the deadline was extended until the end of January 2023 due to the slow rate of receipt.
The Ministry of Finance announced that the property tax reform is to be implemented in a revenue-neutral manner, meaning that local authorities should not receive more or less money than before. In order to guarantee this step, the ministry said that it has introduced a legal regulation in the state parliament this week. "The reform alone should not result in any local authority collecting more property tax," said Finance Minister Heiko Geue (SPD) in a statement.
The new property tax calculation is to apply from 2025. This had been demanded by the Federal Constitutional Court; until recently, the tax offices calculated the value of a property on the basis of completely outdated data. For the new calculation, almost 36 million properties nationwide will have to be revalued. Property tax is one of the most important sources of income for local authorities. Most recently, it has been pouring around 200 million euros a year into the coffers of cities and municipalities in the north-east.
Despite the extension of the deadline, some municipalities in Mecklenburg-Vorpommern are still waiting for a significant portion of property tax declarations. The upcoming property tax reform requires careful consideration of finances and taxes, as the Ministry of Finance aims to ensure that local authorities do not benefit or suffer financially from the changes.
Source: www.dpa.com
