New property tax rip-off 2024
This happened to a viewer of our YouTube channel. She sent us a letter that addresses an issue that affects many homeowners in Germany: the new property tax and the associated appeals. But what happens if you take action against property tax notices from local authorities? Our viewer received a bill that left her speechless.
What is the property tax and the contradiction about?
Our viewer, a homeowner from the southwest of Germany, has lodged an appeal against her local authority’s property tax assessment. Many citizens in Germany have taken similar action, as the new property tax may be unconstitutional. However, this is already the first sticking point: the objection was not submitted to the tax office, but directly to the municipality. But why is this so problematic?
The tax office is the authority responsible for property tax. If the tax assessment is not contested, no action can be taken against the municipality’s decision at a later date. This is where the problem arises: an appeal to the municipality without a prior appeal to the tax office has no legal effect. The city therefore rejected our viewer’s objection and set a fee of €360 for the notice of objection.
The legal basis for the fees
The city refers to an administrative fee statute that provides for a fee for the processing of appeals. But is this fee of €360 justified? The city argues that the decision took five hours to process, which is supposed to justify the high fee. Every quarter of an hour or part thereof is charged at €18.
The municipality’s administrative fee statutes serve as the basis for charging fees. Among other things, the processing of legal appeals is listed here, which also includes appeals against property tax assessments. The fee is therefore justified in principle, as there is a corresponding legal basis. It can therefore never hurt to take a look at your city’s administrative fee statutes before lodging an appeal.
What can you do?
If you are confronted with an invoice for fees, you should first apply to the local authority to inspect the files. This will give you access to the working time documentation and allow you to check whether the hours stated are justified. You should also find out about your rights and options, for example whether the fee is reasonable.
You can request access to the files with the following PepperPaper: What data does the municipality have about you for property tax?
And if the whole subject of property tax appeals and objections is still incomprehensible to you and you’re not sure how to proceed. Then book your first aid consultation.
