Bremen Receives Over 50,000 Objections to New Property Tax Assessments
Introduction
The German city of Bremen has witnessed a significant surge in objections to its recently implemented property tax assessments, with over 50,000 disputes being filed. This development underscores the widespread concerns among property owners regarding the fairness and accuracy of the new tax regime.
Breakdown of Objections
The Bremen Finance Authority has confirmed that approximately 3,000 objections have been received specifically against the property tax notices and their underlying assessment values. This figure is in addition to the 47,900 objections already lodged against the earlier Grundsteuerwertbescheide (property value notices).
Processing of Objections
Out of the 47,900 objections to the property value notices, around 5,000 have been processed. In these instances, property owners have acknowledged errors in their declarations and made necessary corrections.
Basis for Objections
The recent surge in objections stems from the implementation of a new method for calculating property tax in Germany. The previous system was deemed unconstitutional due to its reliance on outdated valuation practices.
Assessment Adjustments
In response to the Constitutional Court’s ruling, the city of Bremen pledged in late 2024 that it would set the new tax rate for 2025 in a manner that would not lead to an increase in overall property tax revenue compared to the previous system. However, this does not preclude individual tax adjustments, with some property owners facing higher tax bills while others may experience reductions.
Authority Guidance
The Bremen Finance Authority has clarified that the current objections can only contest the application of the tax rate, as challenges to the property valuation itself should have been filed within a one-month period after receiving the property value notice.
Objection Prioritization
In handling the objections, the Finance Authority is prioritizing cases where the property owner’s concerns can be readily addressed. Objections that challenge the constitutionality of the property tax system will be deferred until a final decision is reached at the highest judicial level.
Conclusion
The large number of objections to the new property tax assessments in Bremen reflects the widespread concerns among property owners about the accuracy and fairness of the new system. While the Finance Authority is working to process objections efficiently, it emphasizes that only challenges to the tax rate application are currently admissible. Property owners who have concerns about their property valuation must explore other legal avenues for redress.
