Frustration over property tax reform: 10,700 objections in Göttingen!

Frustration over property tax reform: 10,700 objections in Göttingen!

The property tax reform is causing quite a stir among property owners in Lower Saxony, and this is particularly reflected in the catchment area of ​​the Göttingen tax office. Since the reform announcement, property owners have accumulated numerous concerns and frustrations. Because, like the Göttinger Tageblatt reported, over 10,700 objections were received against property tax assessment notices in Göttingen alone in 2024.

What exactly is happening here? The property tax assessment notice deals with the calculation basis for the new property tax, which will apply from 2025. The basis for the determination is the property tax base amount, which is then multiplied by the assessment rate to determine the final tax amount. The Göttingen tax office processes more than 90,000 measurement notices every year, which creates an enormous additional workload with so many objections.

The objection madness

Of the 10,700 objections received, 3,028 have already been resolved, while 1,254 are under review. However, things look particularly bleak for 6,418 objections that are suspended due to doubts about the constitutionality of the Lower Saxony Property Tax Act. Is the whole reform not legal? An ongoing model case before the Lower Saxony Finance Court could soon provide answers here.

In the entire state of Lower Saxony, the number of objections totals over 400,000 with around 3.3 million property tax assessment notices. Despite these complaints, the Lower Saxony Ministry of Finance expects the new property tax to be introduced as planned, which will apply from January 1, 2025, like the NDR reported.

The background to the reform

The root of this upheaval lies in a decision by the Federal Constitutional Court from 2018. It declared the old method of calculating property tax unconstitutional. The federal and state governments therefore had to develop new approaches. In Lower Saxony, the choice fell on an “area-location model”, which includes the area, development and situational location of a property in the calculation. The standard land values ​​are determined by independent expert committees in order to create a fair basis.

Like the city of Göttingen explained, despite the initial assumptions that the changeover should be revenue-neutral, postponements and adjustments are also possible. This could result in the assessment rates for the various property taxes, especially for agricultural and residential land, having to be increased - from 530% to 620% or from 600% to 735%. These adjustments are necessary to secure the usual municipal income.

In summary, property tax reform is an issue that concerns many citizens in the country. After a strenuous year of proceedings, there are still numerous questions to be answered by the end of 2024 and uncertainties remain high. Inquiries about the property tax assessment amount and its composition are already increasing rapidly. The city of Göttingen has asked for patience, as processing times could be extended due to the increased volume of inquiries. It will be interesting to see how the situation develops and whether the owners can regain their trust in the new system.