Scholz on property tax reform: tenants should not be taxed

Finance Minister Scholz promised that property tax reform would not be at the expense of tenants. He has now presented his projects to his country colleagues. Everyone did not convince them.

Property tax reform for homeowners now includes the Länder. Federal Finance Minister Olaf Scholz presented his proposals. He promised that there would be no extra burden for tenants.

The Federal Constitutional Court had asked for a new regulation because it considered the tax base unfair. There must be an invoice in the spring. By the end of 2019, the Bundestag and the Bundesrat should decide.

Model linked to value

At the meeting, many countries have now indicated that they support Scholz's preferred value-based model. The reason: this model is more accurate than a surface model, which favored Bavaria and Lower Saxony.

The Finance Minister 's plans include three key points: a legally secure tax base and a socially equitable reform that continues to guarantee municipalities an income of about 14 billion euros. In the future, the valuation base will consist of the following elements: net rent, living space, year of construction, site area and land reference value.

Landlords can transfer the cost of property tax on rents. In order to mitigate rent increases, especially in metropolitan areas, it is necessary to lower the so-called Steuermesszahl.

Skepticism in Hesse and Bavaria

Hesse Finance Minister Thomas Schäfer (CDU) was skeptical after the meeting. The property tax must be fair, simple and constitutional. "The proposal of the Federal Minister of Finance does not solve that," he said. The model of the Federal Ministry of Finance aims to guide property taxation in a socially balanced way up to the level of rents.

However, this idea is rather diluted in the calculation model. "Although the starting point is rent, the imputed interest rates and the year of construction have at least as much impact on the charge level, and the value of the land also plays a role. key role, "he said. "In the end, the model focuses on the value of the properties, not what tenants pay for their use."

Bavarian Finance Minister Albert Füracker (CSU) had already criticized Scholz's plans to raise taxes, raise rent and especially bureaucracy.

In early January, Scholz will meet again with the ministers of the countries. Then a decision for a model could already be made.