1,400,000 complaints lodged against property tax in southwestern Germany - 1,400,000 protests against the southern-region property tax
Property Tax Objections Soar in Baden-Württemberg
Residents of Baden-Württemberg have filed over 1.4 million objections against the new property tax law that came into effect on January 1, 2025, according to an SWR report. This represents nearly 30 percent of all property owners in the state, placing Baden-Württemberg at the forefront in objection rates nationwide.
The Southwest Broadcasting (SWR) learned from the Ministry of Finance in Stuttgart that most objections express doubts about the constitutionality of the new property tax law in Baden-Württemberg. About 1.3 million of the objections are classified as "mass objections."
However, in approximately 125,000 cases, other reasons were given, such as incorrectly calculated property sizes. As of now, around 56.7 percent of these objections have been resolved.
Baden-Württemberg employs a unique property tax model, where only the property's value matters, regardless of the items on it. This has resulted in complaints from owners of single and two-family homes with large gardens, who are required to pay significantly more.
The question of whether the law is constitutional is currently under consideration by the Federal Fiscal Court. The court proceedings are ongoing, causing the processing of these objections to be temporarily halted.
In June 2024, the first two lawsuits against the new property tax were dismissed by the Finance Court of Baden-Württemberg. The plaintiffs from Stuttgart and Karlsruhe, supported by the Taxpayers' Association and the Association of House & Ground, then appealed to the Federal Fiscal Court.
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Several factors contribute to the high number of objections, including complexity, confusion, uncertainty over valuation, fears of increased taxes, and advice from consumer advocates and lawyers. Legal doubts surrounding the new law center on its fairness, compatibility with the German constitution, administrative overload, and potential for errors.
While Baden-Württemberg is not the only state with its own property tax model, it is notable for its high number of objections, surpassing that of even the most populous federal state, North Rhine-Westphalia, where there are currently 1.5 million objections. In contrast, the classification in other states is determined more roughly based on land value and 2022 rent.
Bavaria, like Baden-Württemberg, operates its own property tax model, known as the "area model." Here, the property tax is calculated primarily from the area of the property and buildings. Bavaria also has around 1.3 million objections, with an objection rate of around 11.3 percent.
- The high number of property tax objections in Baden-Württemberg, amounting to over 1.4 million, has sparked concerns about the employment policy of the local government, as it struggles to process such a large volume of appeals.
- The debates surrounding the constitutionality and fairness of the property tax law in Baden-Württemberg have drawn attention not only from local businesses and residents but also from political circles, as the outcome could have implications for finance and general-news nationwide.