Taxes - Tens of thousands of complaints about assessment notices for property tax
Many property owners in Mecklenburg-Vorpommern have lodged objections to already dispatched property tax assessment notices. There are approximately 75,000 objections, which is roughly every eighth notice, according to a spokesperson for the Finance Ministry in Schwerin, in response to an inquiry from the German Press Agency. Property tax assessment notices were even challenged in 16 percent of cases, which equates to over 100,000 objections.
The calculation of the property tax usually follows a multi-stage model. Based on a property tax declaration, the tax office determines the value of a property. Following this, a property tax assessment notice is issued.
With this notice, the tax office calculates the property tax liability, which is also set by a notice. After an objection, the cases are reviewed by the authorities, according to the ministry.
New calculation to take effect from 2025
Millions of properties had to be revalued nationwide for the new property tax calculation. From the beginning of next year, the new calculation is set to take effect.
The reform goes back to a decision of the Federal Constitutional Court from 2018, which deemed the previous assessment basis in Germany unconstitutional. Up until now, tax offices calculated the value of an immovable property based on completely outdated data (West: 1964, East: 1935).
Property owners had to submit information for the new calculation. This can be done, for example, via the Elster portal, which is familiar to many tax declarations. For the municipalities, property tax is one of the most important sources of revenue.
Originally, the deadline for submitting property tax declarations was set for the end of October 2022. Due to the slow processing, the deadline was extended in almost all federal states to the end of January 2023.
The ministry spokesperson emphasized that the Chamber of Mayors MV has agreed that the reform will be implemented revenue-neutral, meaning that the municipalities in total will not have any more or less revenues than before the reform.
The high number of objections to property tax assessment notices in Mecklenburg-Vorpommern has been reported by over 75,000 property owners, equating to one in eight notices. This figure increased to over 100,000 objections when considering cases where property tax assessment notices were challenged. The complex process of calculating property tax involves a multi-stage model, including a property tax declaration, a value determination by the tax office, and a property tax assessment notice. After an objection, the authorities review the cases before making a decision.
