CDU Demands Changes to Baden-Württemberg Property Tax Reform
Stuttgart, Germany – The Christian Democratic Union (CDU) in Baden-Württemberg is calling for changes to the property tax reform implemented in January, following criticism of its impact.
Critical Assessment
CDU state chairman Manuel Hagel acknowledged the need for improvements in the current property tax regulations. "We recognize that we need to enhance the current property tax system. Therefore, we aim to mitigate particularly unfair hardships and provide municipalities with greater decision-making autonomy to tailor the law appropriately," Hagel stated.
The CDU specifically requests that municipal valuation committees re-examine and, if necessary, adjust the land values they have established for all properties. Hagel and CDU finance expert Albrecht Schütte outlined this request in a letter to Minister-President Winfried Kretschmann (Greens).
Additionally, the CDU advocates for the prevention of social hardship cases. Municipalities should be empowered to reduce property tax liabilities if the property owner is at risk of insolvency, the letter emphasizes. The Baden-Württemberg concept should also undergo an evaluation in the medium term.
Minister-President’s Position
Minister-President Kretschmann recently expressed openness to adjustments. "I am generally always willing to consider corrections; it would be surprising if I were not," the Green politician declared in Stuttgart. "The property tax would be the first tax law not to be revised once we have gained relevant experience with it," Kretschmann said. However, he emphasized the need to wait and observe the law’s impact. "We do not amend laws prematurely when the full repercussions are yet to be fully understood."
Background and Rationale
Since the beginning of January, a revised property tax calculation has been in effect throughout Germany. This change was prompted by a ruling from the Federal Constitutional Court, which deemed the previous practice of calculating property values based on outdated data (1935 in East Germany and 1964 in West Germany) unconstitutional.
Baden-Württemberg employs the modified land value model, which focuses on land area rather than the structures on the property. Homeowners have raised concerns, arguing that the model is unfair as it values garden space equally to developed land.
Proposed Solutions
In response to these criticisms, the CDU proposes the following solutions:
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Revaluation of Land Values: Municipal valuation committees should re-examine and adjust land values as necessary to ensure equitable assessments.
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Prevention of Hardship: Municipalities should have the authority to reduce property tax liabilities to prevent insolvency among homeowners.
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Evaluation and Refinement: The Baden-Württemberg concept should undergo a comprehensive evaluation to identify areas for improvement and further refinement.
The CDU believes these measures will enhance the fairness and effectiveness of the property tax system in Baden-Württemberg. The party is seeking a constructive dialogue with the state government to implement these changes and ensure the law serves the best interests of all property owners.
