Higher property and trade taxes for the renovation of the Schongau middle school

Schongau - Schongau is tackling the general renovation of the middle school, including the renovation of the roof and existing buildings, as well as the expansion. In April 2020 the topic was postponed, since then the total costs have increased to an estimated 22.5 million. The undertaking should also be financed through higher income from property tax A, property tax B and trade tax; yesterday, Wednesday, the city council set their assessment rates at 380%.  

When construction work begins, 18 classes and parts of the administration are expected to be housed in containers between the college level building and Fanschuhstraße - that alone should cost around three million euros. City architect Sebastian Dietrich justifies the fact that the updated calculations of the total costs show price increases of up to 15 percent compared to spring 2020 with "insane price fluctuations" - building will also be more expensive for the city.

City treasurer Werner Hefele assumes that the city's own contribution will total just under 11.9 million euros. To be repaid within 20 years and at 1.5 percent loan interest, the additional debt service that the city will incur in connection with the general renovation will in future be just under 558,000 euros a year. Around 125,000 euros and thus the 35 percent rental income from the school association that does not come from its own pocket will flow into the city in the future and is already included here.

The entire city council agreed that the general renovation of the middle school had to pick up speed again.

“It's finally starting,” said Gregor Schuppe (ALS), although the “megaproject of the next few years” will “be withheld from us” solely because of its organizational and financial requirements.

Ilona Böse (SPD) recognized “an absolute necessity” in this “last component at the school center”.

"We all agree," agreed Kornelia Funke (CSU).

More big projects

However, the opinion of the committee as to where the money should come from was not entirely unanimous. Because the middle school renovation is not the only urgent task. A list of priorities of the city councils (we reported) also assigned the highest urgency to the renovation of the municipal apartments in the valley and the realization of the homeless shelter, in addition to important road improvements in the years 2022 to 2025 and beyond. As a result, this and the 558,000 euros for the middle school add up to the additional annual funding requirement for the city to 730,000 euros.

Will growing income, especially from business tax, be able to fill this gap?

According to Hefele, that can hardly be reliably forecast.

His conclusion: “We need more trade tax” - the increase in the rate of assessment from currently 350 per cent is advisable, at 380 per cent the hole that has arisen according to the current status is precisely filled.

“We're not exorbitant,” said Mayor Falk Sluyterman.

380% is exactly the same brand that applies in Peiting, Peißenberg and Weilheim.

Michael Eberle (CSU), on the other hand, held that an increase was neither necessary nor useful.

Like his group colleague Oliver Kellermann, he was concerned about the reaction of the companies.

A location advantage over Peiting, which also has more space, is lost.

The increase in property tax is a burden on the citizens.

Necessary step

Sluyterman saw it differently.

It is not a nice, but moderate path with a clear goal that is being followed, he said, compared to previous decisions.

It's not about luxury projects.

"We are currently no longer able to do our compulsory street and middle school duties."

The decision was well prepared, said Bettina Buresch (Greens), referring to the fact that ALS / Greens consider it long overdue.

"We ensure our ability to act," said Stephan Hild of the support of the UWV.

A package has been developed - this also includes higher fees from 2022/23 in the daycare centers and entrance fees in the Plantsch.

Eberle's compromise proposal to increase from 350 to 360 percent was rejected by only three supporters. The city council decided against three votes to increase property tax A, property tax B and trade tax to 380% in the tax statutes for 2022.

Almost 1,000 traders are currently registered in Schongau, said Sluyterman, Deputy Daniela Puzzovio and City Treasurer Hefele in a press conference on Thursday. Trade tax - this is levied on the profit - are around 570, explained the second mayor; 330 of these are partnerships that offset trade tax with income tax. The city has already contacted 35 of the local corporations by letter, said Sluyterman. Of course, some companies are not doing so well at the moment. He is available for discussions. "The school site is also visited by those young people who are then trained as skilled workers in the companies."

Puzzovio spoke of conscientious preparation of the decision.

In the future, a company will pay 1.05 percent more of its profit by increasing the trade tax multiplier, she calculated.

Hefele provided sample calculations for property owners and property tax A: For a single-family house, which previously cost 273.11 euros, it is now 23.40 euros more.

For a two-family house with previously 437.14 euros it is 34.47 euros, for an apartment with 173.50 euros it is now 14.85 more.

This rate was raised for the last time in 2009.

Property tax B affects agricultural and forestry operations - according to Hefele.