Bad Segeberg relies on property tax C: Owners under pressure!

Bad Segeberg relies on property tax C: Owners under pressure!

The need to actively develop unused land is the focus of the current discussion in Bad Segeberg. The city administration plans to take a decisive step towards housing with the introduction of property tax C (building land tax) from January 2025. This measure aims to increase the pressure on the owners of unused land that is ready for construction and to counter speculation with land. LN Online reports on the support of this initiative by the SPD city representative team. Alexander Wagner, a committed representative of the Social Democrats, welcomes the decision, which received a positive response in the main and finance committee.

The path to property tax C

With the aim of improving the mobilization of building land, property tax C stipulates that municipalities can levy an increased tax rate on land ready for construction. This should result in these areas being built on more quickly in order to counteract the housing shortage. The reform, which was passed by the black-red coalition in 2019, now comes into force and gives cities the opportunity to take the necessary measures. From now on, there have already been voices warning of the challenges, such as the additional administrative burden and the possible financial burden on owners who are not solvent. So do Demo online It is clear that the property tax C serves to make land speculation less attractive and to stimulate the construction of new residential and work spaces.

The plans in Bad Segeberg are ambitious: The SPD would like to have property tax C fully in force by the beginning of 2027, with the basis for the decision being prepared by the end of June 2024. Mayor Toni Köppen supports the initiative, but points out the organizational effort involved in implementing it.

Criticism and challenges

The planned introduction is not only met with approval. Critics, particularly the BBS voting group, are calling for alternative approaches that offer positive incentives instead of burdening owners. BBS parliamentary group leader Jürgen Niemann calls for a thorough examination of the cost-benefit ratio of this tax. Experts from various sides also warn that it is not just about property tax C alone, but also about possible negative effects on the owners. The topic becomes more complex as the reality of dilapidated buildings in the city also comes to the table, such as the old Möbel Kraft high-bay warehouse or the former Höhenkrug.

A look beyond the city limits shows that property tax C is not new. It was introduced as a building land tax as early as 1960 and was abolished after two years. Kommunal.de informs that the reform is up for discussion again today, although other cities such as Hamburg have already taken steps in this direction. The assessment rate for property tax C in Hamburg, for example, is 8,000 percent, while Bad Segeberg is currently at 425 percent.

It remains exciting to see how these developments shape up in the future. The challenges are clear, as is the financial sustainability of the decision, but one thing is certain: the discussion about the building land and property tax C will soon become even hotter in Bad Segeberg.