Suche
Mein Konto
Property tax reform: More than every third municipality in Lower Saxony collects more!
Lower Saxony will experience rising property tax revenue in 2025: 32% of municipalities are increasing assessment rates, tenants are at risk.
Property tax reform: More than every third municipality in Lower Saxony collects more!
The property tax reform 2025 is a topic of conversation in Lower Saxony. A current evaluation of the NDR shows that nearly 32 percent of the 936 cities and towns in the state are seeing increased property tax revenue. This is a remarkable trend considering that the reform was not implemented in a revenue-neutral manner. This means that many municipalities are enjoying greater income compared to before.
The situation is particularly dramatic in Prinzhöfte in the Oldenburg district, where the municipality collects more than twice as much property tax - a deviation of a whopping 127 percent, which came about due to the revaluation of the properties as of January 1, 2022. The Lower Saxony Finance Minister explains that the associated assessment notices have already been sent to the property owners, but no payments are required since the municipalities will only be able to use these notices from 2025.
Consequences for rents and household stability
The effects of increased property taxes are particularly noticeable for tenants, as many apartment owners can pass the additional taxes on to their tenants through operating costs. The Association of the Housing and Real Estate Industry Lower Saxony Bremen is sounding the alarm and warning that housing costs in the state will rise. The Lower Saxony Social Association emphasizes that tenants with low incomes are particularly affected and is calling on the legislature to take action.
On the other hand, the Lower Saxony Association of Towns and Municipalities defends these increases. He argues that they are necessary to stabilize municipal budgets. A look at the statistics reveals: Only 19 municipalities in Lower Saxony reported lower income. This shows that the reform has put many municipalities in a stronger financial position and that the assessment rates are set by the municipalities themselves Lower Saxony Ministry of Finance informed.
New tax law and transparency
The new set of rules, which was passed in the Lower Saxony state parliament in July 2021, is based on a specially developed area-location model. This model should not only be easier to implement, but also less prone to disputes. According to the new law, citizens only have to submit a tax return once, which requires little effort.
Another plus is the “property tax viewer”, which enables taxpayers to view the necessary information on standard land values and thus create more transparency. The tax administration is well positioned and ensures that new tax assessments are only required in the event of serious changes in the situation.
Overall, it can be said that the property tax reform in Lower Saxony has both advantages and disadvantages. The media and interest groups will continue to closely monitor developments and work to ensure that citizens' interests are protected.