Property tax discussion: BDST NRW informs on Monday in Aachen

Property tax discussion: BDST NRW informs on Monday in Aachen

The Federation of Taxpayers NRW plans an extensive information campaign on property tax in Aachen. Next Monday, August 26, 2024, the state manager Hans-Ulrich Lieber will inform the population about current developments in the BGE Aachen education center. This is done as part of the BDST's “Tax Trowers” tour, which aims to clarify questions about property tax and offer the citizens a platform to present their concerns.

The campaign is particularly relevant because many municipalities in North Rhine-Westphalia are faced with financial challenges and even fear that they have to raise property tax. Despite the fact that Aachen is under the nationwide average of 606 percent in relation to the rate of property tax B, Liebers emphasized that such municipalities are of interest. He wants to find out why the lifting rates there are lower and how the city's budget is.

property tax and household counseling

LOOKS explained in advance that the tour serves to promote the exchange between the federal taxpayer, municipalities and the citizens. "We want to study the fire in the respective cities before we start talking to those responsible," he said. The aim is to collect arguments that could be decisive for the upcoming budget consultations in 2025. The BDST in particular wants to question how the measurement volume has changed due to the new property tax calculation.

Another central concern is to explain to the citizens how they can defend themselves against possible increases in property tax. The new assessment of property tax and possible error corrections are also discussed. The information evening should not only give the participants an overview of the current developments, but also offer space for individual questions.

The federal government also sees its function in showing the municipalities new solutions to avoid expensive decisions, such as raising property tax. "There are certainly opportunities for inter -municipal cooperation that should be taken into account," said lovers and referred to positive examples, such as the community property marketing in Eschweiler.

This necessary transparency, which is created by the incoming -neutral lifting rate, is intended to give the citizens a clear picture of what they can expect with regard to their financial obligations. In September, the first updated numbers are to be published, which also take into account possible retrospective changes to the lifting rates.

look into the future

If questions about the future development of property tax, the subject expressed that the topic will remain relevant for a long time. The Federation of Taxpayers plans to continue to actively deal with the municipalities and laws at the state and federal level. "We are convinced that the cooperation between the municipalities and the federal government is decisive in the budget consultations," he explained.

He also noticed that many cities in the past have been able to understand the financial means of the federal government and the state in order to enable better equipment from the municipalities. This is necessary because the financial challenges can only be addressed through joint action. "The broad discussion is essential here," said Liebern. It is also clear to him that a uniform regulation for all of Germany is not feasible with regard to land taxes, since every municipality has specific needs. The decision about the individual lifting rate design should be made locally to ensure the greatest possible fairness.

For those interested, it is recommended to register for the event on Monday in order to take on an active role in the discussion about property tax and their effects on urban coexistence. It is important to not only discuss the current challenges, but also to develop strategies on how the city of Aachen and its neighboring municipalities can remain financially stable in the long term.

The current financial situation of the municipalities

The financial challenges of many municipalities in North Rhine-Westphalia, including Aachen, should not be underestimated. Many cities are faced with constantly increasing expenses, especially in the area of social services and the internal renovation of their infrastructures. These expenses often increase faster than the income, which creates a structural deficit, which is to be compensated for by an increase in property tax. According to the Federal Statistical Office, the average per capita debt in NRW was around 3,400 euros in 2022, which illustrates the precarious financial situation of many cities. The need for a financial realignment is therefore a central topic of conversation among political decision -makers.

inter -municipal cooperation for cost reduction

A possible approach to coping with the financial challenges is inter-municipal cooperation, as it was also addressed by Hans-Ulrich Lieber. Cities and municipalities have the opportunity to bundle resources and manage projects together instead of looking at every task in isolation. An example of successful exchange is cooperation in the field of waste management, where neighboring municipalities often develop common disposal systems and strategies to reduce costs. According to an investigation by the German Association of Urban, up to 20 percent of the operating costs could be saved through such cooperation.

Reform needs in the municipal finance law

The reform of the municipal finance law (GFG) in NRW is also considered an important aspect to improve the financial situation of the municipalities. The funding pot has not been adjusted for years, which leads to inadequate financial resources and limits the opportunities for action of the communities. Experts call for an increase in the tax share that the country gives the municipalities in order to improve this condition. The last fundamental reform took place in 2006, since then the requirements and the financial environment have increased significantly for many cities. This topic could be crucial for future budget consultations, especially with regard to the tense seminar and information situation on property tax.

Current challenges in property tax reform

The property tax reform, which was initiated in 2019, had the goal of making the calculation of property tax more fairly and tailored to current market conditions. However, there are considerable challenges regarding the implementation. The municipalities often receive feedback that the current new reviews for many property owners are associated with considerable financial burdens. This leads to increased dissatisfaction and uncertainty among the citizens, who manifests itself in the form of contradictions against the new notices. The BDSt NRW plays an important role in this context by informing the citizens about their rights and opportunities for opposition.

outlook on the household consultations 2025

The upcoming budget consultations for 2025 will play a crucial role for the municipalities in NRW. In view of the forecast budget deficits, urgent decisions must be made. Mayor and treasurer faces the challenge of maintaining necessary services on the one hand and on the other hand to keep the tax burden for citizens as low as possible. This balance is influenced by the factors already mentioned such as inter -municipal cooperation and reforms in the GFG. The discussions and results of these consultations will have far -reaching consequences for the financial future of cities and municipalities.