Construction crane, about dts
Construction crane, about dts

Property tax: Lower Saxony prefers to take land into account

The federal state of Lower Saxony primarily wants to include the area of ​​real estate in the future calculation of property tax.

This emerges from a bill of the Lower Saxony Ministry of Finance, about which the "world" reports. Basically, the location of a property should also play a role.

But this location factor has only a small part in the overall calculation, as the “world” reports. The individual rules of the law show that the location of a property should only be taken into account by a factor of 0,02, while the area of ​​the property and building should be taken into account by 0,4 - i.e. 20 times. In addition, the locations are only roughly defined and little differentiated in many municipalities. Large areas would probably be merged. Top properties would then be assessed in a similar way to centrally located properties, which are more in a B location, reports the “Welt”. In addition to land, the building area should be included in the tax bill. Lower Saxony, like Bavaria and Hesse, wants to deviate from the federal model in the future taxation of buildings and land and justifies this with less bureaucracy: by taking only floor and building space and a simple location factor into account, “a significant reduction in bureaucracy and personnel costs, A better traceability and the avoidance of regularly required new main determinations for all properties of the real estate strived ”, says in the draft. In April 2018, the Federal Constitutional Court declared the current property tax rules to be unconstitutional and, in the event of a new edition, also required the legislator to take the value of a property into account. This is also the case in a model from the Federal Ministry of Finance intended for the entire federal territory. There, the land value, a statistically determined net rent, the plot area, the type of property and the age of construction are included in the calculation. However, the states can set their own rules based on an opening clause in the relevant law. By the end of this year, the federal states must either have passed their own laws or have adopted the federal model.

By 2025 there will be time to implement the new rules. Around 35 million plots of land need to be reassessed. There are around 3,5 million properties in Lower Saxony.

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