Possible Distribution Shift in Property Tax
Berlin, January 16, 2025 (hib) – According to a study by the Institute for Fiscal and Macroeconomic Research (IMK) at the Hans Böckler Foundation, the planned new property tax assessment could lead to significant distribution shifts. The study examined the effects of the new assessment method on residential properties in Germany.
The IMK study finds that under the proposed method, the tax burden would increase for most homeowners, particularly for those living in high-value properties. On the other hand, homeowners of low-value properties could benefit from the new assessment.
The study also found that the regional distribution of the tax burden would change. Properties in urban areas would be taxed more heavily than those in rural areas. This is because the new assessment method takes into account the location of properties and the local housing market.
The IMK study comes as the German government is discussing a reform of the property tax. The current property tax is based on the rental value of properties, which is often out of date. The new assessment method would be based on the value of properties, which would be more accurate.
The government is expected to present a draft law for the property tax reform in the coming months. The new property tax assessment is scheduled to take effect in 2025.
The IMK study has sparked a debate about the fairness of the new property tax assessment. Critics argue that the new method would unfairly burden homeowners, particularly those living in high-value properties. Supporters of the reform argue that the new assessment method would be more accurate and fair.
The property tax reform is a complex issue with a wide range of implications. The IMK study provides important insights into the potential effects of the new property tax assessment. The findings of the study will likely be closely considered by the German government as it develops its plans for the property tax reform.
Belastungsverschiebungen bei der Grundsteuer möglich
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