Property Tax: Federal Fiscal Court Publishes Rationale for Its Ruling—The Final Appeal Process Begins Now

More than six weeks after the press releases regarding property tax, the Federal Fiscal Court (BFH) finally published the full reasoning behind its ruling on July 2, 2026 .

At first glance, this seems to be nothing more than a formality.

In fact, however, this day marks a decisive turning point.

Only now can the plaintiffs legally file the constitutional complaints they had announced with the Federal Constitutional Court.

For millions of homeowners, this means:

The issue of property tax is far from settled.

Why July 2 Is More Important Than May 20

Many property owners are familiar with the date May 20, 2026.

On that day, the Federal Fiscal Court issued its press release regarding the test cases against Baden-Württemberg’s property tax model.

At the time, however, only the result was known.

The complete written judgments, including the grounds for the decisions, were not yet available.

These are the very rulings that have now been published:

• BFH, Judgment of April 22, 2026 – II R 26/24
• BFH, Judgment of April 22, 2026 – II R 27/24

Original decisions:

https://www.bundesfinanzhof.de/de/entscheidung/entscheidungen-online/detail/STRE202610124/

https://www.bundesfinanzhof.de/de/entscheidung/entscheidungen-online/detail/STRE202610125/

Why the reasoning behind the ruling is so important

A constitutional complaint is not directed against a press release.

It is directed against a judgment that is fully reasoned. This is provided for in Section 93(1) of the Federal Constitutional Court Act (BVerfGG).

Only once the written grounds for the decision are available can the plaintiffs review,

• what arguments the Federal Fiscal Court uses
• which fundamental rights they believe have been violated
• and in which areas the Federal Constitutional Court should review the decisions.

That is why the deadline for filing the constitutional complaint did not begin until now.

What the Federal Fiscal Court Ruled

The recently published rulings clearly illustrate the Federal Fiscal Court’s position.

The Federal Fiscal Court (BFH) has ruled that Baden-Württemberg’s property tax model is constitutional.

In this regard, the court relies primarily on four arguments:

• The legislature may apply standard categories and flat rates to property tax
• Land value benchmarks may be used as a measure of valuation
• Buildings do not need to follow the Baden-Württemberg model
• The resulting inaccuracies are considered acceptable given that this is a mass-production process.

These are precisely the issues that Karlsruhe will now be addressing

The plaintiffs see it differently.

In their view, the model violates, in particular, the principle of equality enshrined in the Basic Law.

From their perspective, properties are treated the same despite significant differences, or comparable properties are taxed differently.

It is precisely these constitutional issues that the Federal Constitutional Court is now tasked with clarifying.

The associations aren’t giving up

The Taxpayers’ Association and Haus & Grund have already announced their intention to file a constitutional complaint. The alliance of associations made this announcement on May 20, 2026:

Baden-Württemberg Taxpayers’ Association (e. V.) on May 20, 2026: Alliance of Organizations Will Support Constitutional Complaint

This brings the legal dispute to the court of last resort.

The Federal Fiscal Court no longer has the final say.

Now it’s up to Karlsruhe to decide.

What does that mean for you?

If your appeal, objection, or court case is still pending, you should continue to protect your rights.

For as long as the Federal Constitutional Court has not yet ruled on the matter, the constitutional assessment of property tax remains open.

Anyone who concludes their proceedings at this stage may be cutting themselves off from this opportunity.

Matching template from PepperPapers

If your case is still pending, you can cite the current model cases and the constitutional complaints that have been filed.

For this purpose, PepperPapers provides the template “Property Tax Model Proceedings – Suspended Proceedings.”

👉 https://pepperpapers.de/produkt/grundsteuer-musterprozesse-ruhendes-verfahren-vorlage/

You can use this form to request that your case remain open until a final decision is reached.

Conclusion

July 2, 2026, is more than just the date on which two BFH rulings were issued.

It marks the beginning of another legal phase in the dispute over property tax.

For it is only now that the grounds for the ruling are available, on the basis of which the announced constitutional complaints can be substantiated.

The Federal Constitutional Court now has the final say.