New rulings on property tax from the Federal Fiscal Court
Good news for property owners: The Federal Fiscal Court published its rulings on property tax on June 13, 2024 (case numbers II B 78/23 and II B 79/23). Germany’s highest tax judges have ruled in favor of property owners, confirming doubts about the legality of the new property tax regulations.
What does that mean for you?
The Federal Fiscal Court has taken a close look at the sections of the Property Tax Reform Act and the Valuation Act and interpreted them in line with the constitution. This means that the current regulation of valuing all properties equally is not legal. You must have the opportunity to prove a lower value if the tax office’s valuation is excessive.
What will the tax authorities have to do now?
This decision could result in millions of appeals against the new property tax assessments being lodged with the tax authorities. However, the procedure for proving a lower value is not yet clearly regulated and could lead to considerable administrative challenges.
What should you do?
If you are affected by the new property tax, it is worth lodging an objection. Use the PepperPapers sample property tax objection form to do so, provided you meet your objection deadline. If your objection period has expired, you can submit an application with another PepperPapers legal document to achieve your goal.
What happens next?
Although the Federal Fiscal Court has ruled, many questions remain unanswered. In particular, how exactly proof of a lower property value is to be provided and what evidence the tax authorities must accept. These uncertainties must be clarified in the coming months before the new property tax comes into force in January 2025.
Stay informed and prepare yourself so that you can protect your rights as a property owner. Subscribe to our channel and visit PepperPapers.de for up-to-date information and support in dealing with the new property tax.
