Laupheim's financial miracle: 7.4 million euros more through trade tax!

Laupheim's financial miracle: 7.4 million euros more through trade tax!

In Laupheim the signs are pointing to an upswing, at least as far as finances are concerned. Johannes Lang, head of the city's finance department, recently presented the local council with an interim financial report for the second quarter of 2025, which brought some positive news. Accordingly, the city's ordinary result increases from 3.3 million to a whopping 11 million euros. Trade tax revenues in particular are rising sharply, with an increase of around 7.4 million euros. This development leads to a forecast of almost 30 million euros in trade tax revenue by the end of the year, which brings a positive change to Laupheim's financial situation, contrary to the general trend in the region. Schwäbische.de reports that despite this positive development, economical and economical action is still necessary.

However, there are challenges ahead. Biberach district administrator Mario Glaser has announced an increase in the district levy to at least 30 percent. This is happening in the midst of a deteriorating financial situation in the Biberach district, which Mayor Ingo Bergmann emphasizes and points out that Laupheim is a positive exception here. Despite the encouraging increase in income from trade tax, the city is also faced with rising personnel costs due to tariff increases. This could reduce the positive result in the near future.

The role of the district levy

The topic of district levy is also a hot topic. This levy is a financial policy instrument that is paid by the municipalities belonging to the district to the district in order to cover its financial needs. Interestingly, districts have no tax sovereignty of their own and are dependent on raising the levy based on the tax capacity of the municipalities and their key allocations. In this context, the district levy ensures that the financial differences between the municipalities are reduced and all district tasks can be financed. Wikipedia explains that this levy also has a constitutional basis as long as the municipalities' financial performance remains guaranteed.

A structural spending problem was also discussed in the local council. Tobias Rommel from the CDU expressed criticism of the lack of proposals to reduce spending. Nevertheless, Mario Fischer from the Open List highlights the positive financial trend, but emphasizes that it is necessary to implement the regional council's guidelines. The concerns of Philipp Lebherz, also CDU, about the increase in trade tax revenues as a potential “book value” in the budget show that there is no certainty about future financial flows, especially given the economic uncertainties worldwide.

Trade tax: a double-edged issue

Trade tax is an important pillar of municipal revenue, but also represents a challenge. In other cities, such as Mannheim, trade tax revenue is coming under pressure - the city is already expecting a decline in its 2024 budget. A contradictory aspect is that high trade tax revenues in one year can lead to lower resources the year after, which underlines the difficulties in financial planning.[ IHK.de ] explains that the trade tax depends heavily on the economic situation, which calls into question its predictability for municipal budgets.

It will therefore be important for Laupheim to continue to demonstrate a good hand at budget management in the coming years. The need for renovations and the implementation of measures from the federal government's “investment booster” could be decisive factors for future development. The local council is required to tackle the existing challenges in order not only to secure the current positive situation, but also to be well prepared for future uncertainties. It will be interesting to see how the financial situation in Laupheim develops and whether the city can maintain its pioneering role in the coming financial year.