Property tax in court: Federal Fiscal Court to hear case on November 12, 2025

The court date has been set: November 12, 2025

The time has come this week: on Wednesday, November 12, 2025, the Federal Fiscal Court (BFH ) in Munich will hear three test cases on the new property tax.
The case concerns the so-called federal model, which applies in several federal states – and the question of whether the new calculation is constitutional.

Three proceedings are scheduled for one morning: at 9:30, 10:30 and 11:30 a.m.
All three claimants have followed the same path: property tax return, tax assessment notice, objection, appeal – and now the second instance at Germany’s highest tax court.

Who complains and why

The plaintiffs are representative of millions of owners in Germany:

• A couple from the Cologne area with a rented 54 m² apartment,

• an owner from Saxony who lives in her 70 m² apartment herself,

• and a Berlin landlord whose 58 m² apartment is located directly on the railroad tracks – rent currently €5.07/m², according to the tax office it should be €9.32/m².

Their common argument:
The federal model of property tax treats unequal properties equally – and thus violates Article 3 of the German Basic Law (principle of equality).

“Whether it’s an apartment by the train tracks or a villa in the countryside – everything is charged at a flat rate. This contradicts the principle of equality,” explains lawyer Patricia Lederer from PepperPapers.de.

How tax offices are currently behaving

As the court date approaches, the tax offices react very differently to appeals against the property tax assessment:

1. Correct procedure:
   The tax office confirms the objection and suspends the proceedings until the test cases have been decided.
   → This is the correct legal procedure.

2. Incorrect procedure:
   Some tax offices reject appeals and immediately issue an objection decision.
   → This is problematic because there is a one-month appeal period against this decision.

3. Confusing letters:
   Other tax offices send multi-page letters with the sentence “I reject your application”.
   This is not about the objection itself, but about the application for suspension of enforcement – i.e. to suspend payment until a decision is made.
   If this application is rejected, a new application can be submitted to the tax court.
   In many cases, the same letters nevertheless state that the proceedings have been suspended – good news for those affected.

How municipalities react

The municipalities that set the property tax also react differently:

• Silence: Some do not answer at all – in legal terms this means a tacit silence.

• Dormant status: Others expressly state that the proceedings are dormant – correct.

• Rejection: Some reject the objection and issue a notice of objection. This must be contested within one month appeal to the administrative court must be filed within one month.

And the courts?

The picture is similar for the tax courts:

• Many courts wait and see – that’s fine from a legal point of view.

• Some already decide on applications for suspension of enforcement and reject them.
  These decisions often state: “This decision is incontestable”.
  But this is not true. Those affected can:

  1. lodge an objection to being heard (Section 133a FGO) due to violation of the right to be heard, or

  2. the constitutional complaint to the Federal Constitutional Court.

What happens in Munich on November 12

On Wednesday, the three test cases will be called for oral proceedings.
The judges of the Federal Fiscal Court will first introduce the facts of the case and the dispute, summarize the main points and hear the arguments of both sides – the plaintiffs and the tax office.

A ruling is not expected on the same day.
However, observers expect that it will already become clear in the hearing which way the court is leaning:
Towards a possible unconstitutionality – or towards confirmation of the new model.

You can find out all the information about the property tax court dates on November 12, 2025 in the new video 🎬 https://youtu.be/DluDRDO-Pko

Conclusion

November 12, 2025 will be the key day for the property tax reform.
Although no verdict has yet been reached, the direction is crucial – for millions of property owners whose proceedings are currently suspended or in limbo.

PepperPapers.de follows the developments and explains what the decisions mean for owners, municipalities and tax offices.

• Location: Federal Fiscal Court, Ismaninger Straße, Munich
• Dates: 9:30 – 11:30 a.m., Wednesday, November 12, 2025
• Topic: Model lawsuits on the federal property tax model
• Source: Federal Fiscal Court – In focus: Property tax 👉 https://www.bundesfinanzhof.de/de/anhaengige-verfahren/im-fokus-grundsteuer/

Tip:
You can find legally compliant templates for objections, complaints and applications for suspension of proceedings in the PepperPapers property tax templates.