In the case of the Reform of the land tax to tenants and house owners of more loads should stay the bottom line is spared. “It is a law that is not contributing to the tax for all Taxpayers in Germany increases,” said Finance Minister, Olaf Scholz.

The SPD politician presented in Berlin on Tuesday a draft law for the revision of the local tax. The property tax should be easy to calculate, and “citizen-friendly”. The number of information that should make Taxpayers, should fall significantly. The Union faction in the Bundestag, however, threatens a Blockade against the plans of Scholz. She wants to “opening clauses” that allow countries to have their own regulations.

The Federal constitutional court had been due to obsolete bases requires a revision of the land tax until the end of 2019. Currently, land values are from 1935 in the East, and from 1964 to be used in West Germany. The plots are now for 1. January 2022 to be re-assessed, and thereafter every seven years. In particular, the value of the land and the average rent are expected to play a role. For the first time, the newly calculated tax to 2025 will be due.

the Union group Vice Andreas Jung (CDU), said the group could not agree to the Reform without country-opening clause. The proposal by Scholz is not matched and thus not a draft of the coalition”. Between Kiel and Konstanz, there are many differences, even between city-States and countries. “We want to allow, therefore, Federal diversity and tailored solutions,” demanded Young.

interior Minister Horst Seehofer (CSU) said: “For me, it is important that we make in the law of the Federal power, an opening clause for the country.” A country should not be the solution at the Federal level is satisfied, it would be free then, to regulate this on its own.

Scholz expressed initially to the dispute to the opening clause. He said that the new regulation will not lead to higher tax burdens for citizens. According to the Ministry, the annual revenue is the property tax at around 14.8 billion euros. The Ministry of Finance hopes on a Cabinet decision in April.

the first re-evaluation of the basic tax does not result after decades of massive increases in the tax, to be reduced, the calculated values are then again significantly, the Relationship between higher and lower priority objects. Scholz described the scheme as “very friendly, nice”. How high is the tax fails at the end carefully, to determine the municipalities with the so-called rate of assessment. Whether the total burden for the citizens, not in excess of the previous of around 14.8 billion euros per year, will be located in your Hand.

Scholz was confident that the municipalities forego possible income due to the Reform. “You can assume, in Berlin, in Hamburg, Munich, Düsseldorf, Frankfurt, Stuttgart, Leipzig, in many, many other places that are very attractive, and where land values are massively increased, lowering the mayor and the city councils of the rates dramatically,” he said. “I’m assuming that this is across the Board in all of Germany.”

The municipalities should have with the planned property tax reform is also a means of pressure for housing in the Hand. The so-called property tax C for previously undeveloped areas should be re-introduced, announced Scholz. So that unused land could be taxed higher.

In the case of certain undeveloped plots of land the local authorities should be able to apply the Scholz-plans according to the multiplier higher, “in order to make a little bit of pressure on the property owners using their property”, as explained by the Minister. The introduction of the CDU, CSU and SPD had agreed in the coalition agreement. A land tax C it has already happened once, it was abolished in the 1960s.

dpa

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Teodora Torrendo is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.

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