the Federal government and the Länder have reached an intermediate result for a Reform of the land tax. For the delivery of a combination of space, location and actual net should for rent be used, informed the Federal Finance Minister, Olaf Scholz (SPD), as well as representatives of the Federal States. “It is a socially fair solution,” said Scholz. On the Basis of now, a draft law will be developed, which the countries need to agree to.

the Union Also praised the compromise: “I am grateful that we have managed to achieve a very good interim result,” said Hesse’s Finance Minister Thomas Schäfer (CDU). It was important to come to significant simplifications. Bavaria’s Finance Minister Albert Füracker (CSU), called the vertices as a cautious approach and basis for Discussion for a new model. “Of an agreement but we are still pretty far away,” said Füracker. The construction and housing policy spokesman of the FDP parliamentary group, Daniel Föst, criticized the compromise as a “bureaucratic madness”, the verteure continue to Live.

The Federal constitutional court had decided that the assessment of property tax for real estate unconstitutional. Accordingly, the Federal government and the countries need to create by the end of 2019 a new. The property tax brings at present a total of about 14 billion euros in the year.

Summary: What is tax?
How is calculated the property tax so far? Why is a Reform necessary? What is agreed by the Federation and the Länder? What was the focus of the dispute?
What is the property tax?

the property tax is a tax on the ownership of land and buildings. The land tax for agricultural land and forestry property rights, such as, for example, fields and the property tax B is levied on built-up or buildable land and buildings. It is industry-, wage-, income – and sales tax one of the main sources of income of cities and municipalities. The revenue from the tax A layers of 2017, at 400 million euros. The property tax B brought in the 13.56 billion euros.

the owner of the reason may tax as ancillary costs on the rent out. On average each month, should be about 19 cents per square meter.

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is calculated As the property tax so far?

In Germany there are about 36 million residential buildings and land. The calculation of the payable land tax is to remain about the same. It is determined on the basis of three factors multiplied together: the unit value, which is determined from the Grundstücksart and the age of the house, the tax-measuring number and rate of assessment by the municipalities to determine for themselves. Depending on the need of money of the municipalities, this rate can be less than 100, or up to nearly 1,000 percent.

The unit of value should actually be all of six years newly identified, so that changes can be taken into account, for example, the structure of the building or the environment. But the revaluation it has come because of the high cost never. Thus, the differences for comparable houses in a similar location, over the decades, getting bigger and bigger.

In the case of the renovation or breakdown in condominiums, there was partial revaluations. The result is that sometimes the reason can be vary expensive to be a road from house to house, even within a building complex.

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Why is a Reform necessary?

The Federal constitutional court had decided in the past year, since more than 50 years, not adjusted unit values for land are “completely outdated” and lead to “serious inequalities” of the property owners. According to the judgment, the Federal government and the countries need to create by the end of 2019 a new.

Without Reform, up to the deadline, a loss of billions of revenue threatens. Cities and municipalities have urged a quick agreement. To bring a new regulation by the Bundestag and the Bundesrat, may take months. Officials would have to begin in February with the drafting of a law, so that it can really be to the end of the year. From 2020 onwards the citizens to fill in tax Declaration with the details of the new property tax. They must be collected no later than 2025 in the new shape, nationwide.

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have agreed on What the Federal government and the States?

A key issues paper that will be used three points for the calculation of the property tax: the age of the building, the regional soil guideline value – that is, the value of the area and the average net cold rent. This, in turn, are derived from the microcensus of the Federal Statistical office. The actual rent is below this average rent, this should be in the calculation.

A of Bavaria and, for example, the FDP desired model, in which the amount of Tax is oriented flat on the surface, it will not give the submitted paper. The Federal government and the Länder want to try but according to their own statements, to minimize the bureaucratic burden: “For buildings built prior to 1948, from simplifying the specification of reasons is sufficient in the statement, ‘the buildings built pre-1948′”, it says in the paper. Lower Saxony’s Minister of Finance Reinhold Hilbers (CDU) said that it is just for commercial sites no longer load. Different control measurement to ensure that the tax distribution is expected to remain roughly as it is today.

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What was the focus of the dispute?

The Federal Finance Ministry originally had two models. On the one hand, a value dependent on the model, according to which, in the calculation of unit value net cold rent, living area, year built, land area and land value should be included. This so-called rent model was preferred Finance Minister Olaf Scholz (SPD). It is true from his point of view, the model, the requirements of the constitutional court for a contemporary and socially just taxation.

Alternatively, the Federal Ministry of Finance proposed a value-independent model, also known as “surface model”. Here, the value would be only on the basis of der surface of the land and of the building have been identified. It is favoured, among other things, of Bavaria, also, the real estate industry advertises because of the simple survey for the surface model.

The tenants ‘ Association and the Institute of the German economy had demanded, instead of Scholz’s proposals, a pure land tax on the basis of the value of the Property. The tenant of the Federal government and the opposition parties criticize that the so-called rent model, the fundamental tax on the rent will be prorated and Living in many regions is still more expensive. In addition, the housing warn – and real estate companies as well as representatives of CSU and the FDP, in front of a huge bureaucratic effort, because the information would be required for each individual apartment.

With Material from dpa and AFP

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