Haus & Grund and Taxpayers Association Announce Constitutional Complaint Against Property Tax Reform
Haus & Grund and Taxpayers Association Announce Constitutional Complaint Against Property Tax Reform
The property owners’ association “Haus & Grund” and the Federation of Taxpayers have announced a constitutional complaint against the recent property tax reform. The complaint follows a decision by the Federal Fiscal Court (Bundesfinanzhof), which upheld the new regulation, known as the federal model, that applies in eleven German states. The plaintiffs argue that the method used leads to unrealistic property valuations and often results in excessive taxes. Property tax is a crucial revenue source for municipalities and is initially paid by property owners, though landlords typically pass these costs on to tenants. Dr. Kai H. Warnecke, president of “Haus & Grund,” expressed confidence that the Federal Constitutional Court will reach a different conclusion than the Federal Fiscal Court and hopes for swift legal clarity given the importance of the matter.
