Property tax: Is your case now lost? BFH decides – but the most important questions remain unanswered

On 20.05.2026, the Federal Fiscal Court (BFH) dismissed the complaints against the Baden-Württemberg property tax model.

Many owners will now be thinking:

👉 The matter is settled.

👉 The property tax has been decided.

👉 An objection is no longer worthwhile.

But that is precisely too short-sighted.

This is because the actual reasons for the verdict are not yet available.

What did the BFH actually decide?

The Federal Fiscal Court has rejected the appeals against the Baden-Württemberg state property tax law. According to the press release published to date, the BFH considers the model to be constitutional.

However, the written reasons for the judgment have not yet been published. And it is precisely there that we will see how the BFH actually justifies the decisive points of criticism.

Why the ruling raises questions

The press release already contains statements that many property owners and tax experts will view critically. The BFH points out that property tax is a so-called mass procedure. The court thus accepts considerable simplifications and standardizations. But this is where the problem begins.

Same zone – completely different properties

In the Baden-Württemberg model, the standard land value plays a central role.

However, practice shows that two properties within the same standard land value zone can have a completely different actual value. Nevertheless, they are treated almost equally for tax purposes.

The question remains: How great may such inaccuracies be before they violate the principle of equality of the Basic Law?

Buildings still play no role

Another point of criticism remains.

The Baden-Württemberg model takes the land value into account, but not the actual building development. For many owners, it makes a considerable difference whether a property

• is a modern apartment building,
• there is a building in need of renovation or
• the property is hardly economically viable.

Nevertheless, the model treats many of these cases similarly.

Why the proceedings are not yet over

The crucial point:

The full reasons for the judgment are missing. And this is precisely why the plaintiffs in the ongoing test cases cannot yet substantiate any constitutional complaints.

Only when the written rulings are published will it be possible to analyze which arguments the BFH actually used. It will then become clear which constitutional points of attack exist.

What owners should do now

Anyone currently taking action against their property tax should not give up their case too quickly. For as long as further test cases and possible constitutional complaints are pending, the legal situation will remain in flux. However, if you do nothing now, you risk your own decision becoming final.

How to secure your rights

With the PepperPapers sample template, you apply for your proceedings to be suspended and refer to the ongoing model proceedings.

This will keep your case open and ensure that you have the opportunity to benefit from later decisions.

🌶️ Be your own lawyer!