Tax office puts pressure on new property tax
The new property tax remains a controversial topic. Despite a flood of test cases and doubts about its constitutionality, the tax office is now enforcing the tax ironclad. Many citizens have lodged appeals against their property tax assessment, but the tax office is consistently blocking these appeals and sending out mass appeal decisions in order to close the cases. The message is clear: if you want to fight back, you have to take legal action – even though property tax is on trial nationwide.
Why this pressure from the tax office?
The aim is obvious: to create a fait accompli before the test cases finally clarify the constitutionality. While the property tax is still pending before the tax courts, the tax office is forcing those affected to choose between a lawsuit or the risky wait for a ruling. For citizens, this means that anyone who receives an objection decision from the tax office and does not file a lawsuit loses the right to a later correction and may have to pay property tax for years, even if the Federal Constitutional Court later rules it to be unconstitutional.
How the system works – basic assessment and municipal assessment rate
The procedure for the new property tax is multi-stage. The tax office issues a “basic assessment”, which determines the value and obliges the citizen to submit their tax return. The actual bill comes later, when the municipalities set their “assessment rates”, which determine the final tax burden. Cities and municipalities can adjust their assessment rates and could set high tax rates due to financial constraints, which can lead to significant additional burdens. For many, this is an unpleasant surprise: the amount of tax remains unclear until the final bill in 2025.
Legally uncertain situation – appeals and test cases
Citizens who have lodged an objection are hoping that the courts will overturn the property tax. However, only a few courts have ruled so far and the proceedings are still ongoing. The Federal Fiscal Court, the highest German tax court, has already expressed doubts about the constitutionality of the tax. However, it could be years before the Federal Constitutional Court in Karlsruhe reaches a final decision. In view of the current wave of lawsuits, a constitutionally correct approach would be to leave the appeals in abeyance until the cases have been decided. Instead, tax offices are rejecting the appeals and forcing citizens to take legal action.
Obligation to sue for those affected – only a lawsuit keeps the case open
If the tax office rejects the objection, the only option for those affected is to file a lawsuit. Otherwise, the decision becomes final and subsequent rulings can no longer be applied in favor of the person concerned. The good news is that filing a lawsuit is easy with the PepperPapers model lawsuit and can be done without a lawyer. By filing a lawsuit, the case remains open and the court then awaits the decisions of the higher instances.
Weighing up the costs – Is a lawsuit worth it?
A lawsuit is not free: in addition to the €49.99 for the sample lawsuit, there are around €312 in court costs, which are due in the event of a negative judgment. But here too, it’s worth taking a look at the figures: If your new property tax increases significantly due to the assessment rate, the lawsuit can be a sensible investment. For example, if you are expecting a drastic increase in property tax of several hundred euros, you could save money in the long term by taking legal action if the Federal Constitutional Court overturns the property tax.
How to secure your rights!
With the PepperPapers model objection and model lawsuit, you can easily file an objection and lawsuit without a lawyer. In uncertain times like these, it is crucial that you know and protect your rights. Take action now! Take the opportunity to keep the proceedings open and secure your rights until the Federal Constitutional Court makes its final decision. Find out more about the new property tax scandal in the latest video!
