Fürstenfeldbruck rejoices: trade tax revenue is unexpectedly bubbling up!

Fürstenfeldbruck rejoices: trade tax revenue is unexpectedly bubbling up!

The city of Fürstenfeldbruck is experiencing an unexpected increase in trade tax revenue. Around 16 million euros more than originally planned are available, which increases revenue from 22 million euros to almost 28 million euros. Treasurer Marcus Eckert informed the Finance Committee about this positive development, which nevertheless comes with challenges. Loud Mercury Around 10 million euros come from back payments after a long period of low interest rates. Furthermore, increasing military spending also contributes to revenue stability. But what about the rest of the money? A software problem seems to be the possible reason for the lack of clarity, which also affects other municipalities.

The basis of the trade tax is set out in the Trade Tax Act. This tax, which is levied on most commercial companies in Germany, evaluates the profitability of the company. The tax rate is usually 3.5 percent of commercial income, although municipalities must set a tax rate of at least 200 percent, as shown on Wikipedia can be read. This makes trade tax an essential source of income for municipalities, as it can generate considerable sums in a good economic climate.

Budget planning and future challenges

The city of Fürstenfeldbruck plans to budget 30 million euros in trade taxes for the 2026/27 double budget. This gives reason to hope that a balanced budget will be possible despite the uncertainties. Thanks to approved loan authorizations, the city can forego additional debt, meaning no further consolidation requirements from the municipal supervisory authority are necessary. This would allow projects such as the expansion of the elementary school and the relocation of the building yard to become reality, emphasizes Mayor Christian Götz.

Nevertheless, the treasurer and finance officer have already pointed out potential financial difficulties from 2028 onwards. The treasurer expects a surplus of around 2.5 million euros in 2026 and over 2 million euros in 2027. A continuous discussion on the budget will continue in November, with adoption planned in December. The immense responsibility that rests on the shoulders of the municipalities is also reflected in the different assessment rates that depend on the individualized income streams Finance becomes clear.

The trade tax in context

Trade tax continues to play a central role in municipal financial policy. This tax is levied by municipalities, which leads to significant regional differences in the amount of revenue. Although trade tax largely excludes freelance work, it is the most important obligation for companies and can sometimes influence the choice of location. Critics warn that the tax burden could be inhibiting and that reform is urgently needed to take digitalization and today's economic realities into account.

The discussion about Fürstenfeldbruck's financial management makes it clear that trade tax is not only a source of income, but also a reflection of economic challenges. However, with smart decisions, cities can set the course to promote both growth and social infrastructure.