The Taxpayers’ Association points out that the first test case has now been filed in an eastern German federal state regarding the federal property tax model.

New model lawsuit

In the case in dispute, the taxpayer is the owner of four rented condominiums in Chemnitz, Saxony. It is a listed, well-maintained building in a redevelopment area. Due to the market situation in the city, the rents that can be achieved there are nowhere near the rents that the tax office applies on the basis of the applicable federal property tax model for property tax according to the rent table for the federal state.

However, the law does not provide for the possibility of taxpayers being able to prove a lower value of the property in individual cases.

Legal protection for owners

The further development of the court case remains to be seen in this respect. It is generally advisable to keep notices on the determination of property tax values as at 1.1.2022 open under procedural law. Click here for the sample objection to property tax.