Germany has not reached a consensus to reform the property tax.
Despite the fact that the German federal states over the years have called for reform of the local property tax, at the last meeting of finance ministers was not reached agreement on plans to reform and instead submitted a proposal to reform the representation of the proposed models for the evaluation of the working group.
Earth in the south of Germany, such as Bavaria and Hesse, support the introduction of simplified tax on property (Eine Einfach-Grundersteuer), which is calculated on the basis of real estate transactions, taking into account the number of floors in the building. The system will not tax the agricultural property.
However, most German federal states calls for a different model of the real estate tax, which tax is calculated on the basis of fair market value of the property, taking into account the location of the property and the state in which it is located.But in the case of adoption of this system, it may be that the assessment of the property by the German tax authorities can be expensive. In August this year, the German Federal Finance Court drew attention to the urgent need to reform the property tax, based on concerns the constitutionality of the current system of property tax.
Lack of reform in the property may violate the principle of equality enshrined in the Constitution. It is expected that in the spring of 2012 will be decided according to a new model of tax reform.
Earth in the south of Germany, such as Bavaria and Hesse, support the introduction of simplified tax on property (Eine Einfach-Grundersteuer), which is calculated on the basis of real estate transactions, taking into account the number of floors in the building. The system will not tax the agricultural property.
However, most German federal states calls for a different model of the real estate tax, which tax is calculated on the basis of fair market value of the property, taking into account the location of the property and the state in which it is located.But in the case of adoption of this system, it may be that the assessment of the property by the German tax authorities can be expensive. In August this year, the German Federal Finance Court drew attention to the urgent need to reform the property tax, based on concerns the constitutionality of the current system of property tax.
Lack of reform in the property may violate the principle of equality enshrined in the Constitution. It is expected that in the spring of 2012 will be decided according to a new model of tax reform.
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