Niedersachsen Faces Surge in Property Tax Inquiries Due to New Calculation Method
Introduction
The introduction of a new property tax calculation method in Niedersachsen, Germany, has sparked a barrage of inquiries from individuals and property owners who are questioning the substantial financial burdens imposed by the new tax assessments.
Background
Since the beginning of the year, a revised approach has been implemented for determining property tax liabilities. This shift has resulted in varied outcomes, with some property owners and tenants experiencing a decrease in their tax bills while others have witnessed significant increases.
Surge in Inquiries
The tax recalculation has prompted an overwhelming number of inquiries, prompting the establishment of dedicated phone lines at 47 tax offices across Niedersachsen. The hotline at the Hanover-Süd tax office alone receives approximately 400 calls per day, handled by a team of 20 individuals.
Reasons for Inquiries
The surge in inquiries primarily stems from:
- Erroneous Declarations: Many callers have identified inaccuracies in their tax declarations, which were submitted two years ago.
- Request for Review: Individuals seeking an examination of their assessment notices, particularly those facing higher tax bills, are also contributing to the increased inquiries.
Errors and Corrections
By the end of October, approximately 455,000 assessment notices had been flagged for potential errors. Of these, only 92,000 had been processed, resulting in 79,000 amended assessments.
While the deadline for filing appeals against assessment notices is one month after their issuance, Finance Minister Gerald Heere (Greens) has emphasized that legitimate corrections will be applied retroactively to January 1, 2025, regardless of whether a timely appeal was filed.
Impact on Taxpayers
The financial implications of the new tax assessments are becoming more apparent as municipalities apply their respective tax rates (Hebesätze) to determine the actual tax liability. Several cities in Niedersachsen have experienced a noticeable increase in complaints against their property tax assessments since the beginning of the year.
However, it is crucial to note that the Hebesatz is not within the jurisdiction of the tax offices and must be challenged directly with the municipality.
Historical Increase and Revenue Importance
The overall increase in property tax payments over recent years is attributed to municipalities gradually raising their Hebesätze. Data from the state statistical office highlights this trend.
Property tax serves as a critical revenue source for cities and municipalities, enabling them to maintain essential public services such as roads, schools, fire stations, and recreational facilities. In 2023, the tax revenue from developed and built-up properties amounted to approximately 1.5 billion euros.
Conclusion
The implementation of the new property tax calculation method in Niedersachsen has generated a substantial number of inquiries from residents questioning the accuracy and financial burden of their tax assessments. Tax offices are actively addressing concerns and correcting errors, with adjustments being applied retroactively even in the absence of appeals. While some property owners may experience reduced tax liabilities, others face higher payments due to previous Hebesatz increases. The significance of property tax revenue for municipalities underscores the need for accurate assessments and responsible fiscal management.
