The big bang is imminent: The property tax 2022 could face problems
Created: 09/09/2022, 16:19
By: Felix Busjaeger
A filler on a tax return form.
© Rolf Kosecki/Imago
The deadline for filing the property tax return is running.
But the reform of the property tax could face problems.
The decisive factor here is the rate of increase.
Berlin – The reform of the property tax 2022 is underway – albeit much more slowly than expected in many federal states.
As early as last August, Federal Finance Minister Christian Lindner (FDP) was therefore open to extending the deadline for the declaration of assessment for property tax.
This was preceded by numerous complaints from owners and tax consultants about the extent of the forms used in the declaration of determination.
The property tax return of the owners is only the beginning.
The big bang could be imminent in Germany.
Fabian Köbler, Federal Chairman of the German Tax Union, also warns of this.
Real estate tax 2022: Determination declaration is sluggish - extension of the deadline is still under discussion
It is still unclear whether there will be an extension of the deadline for filing the tax return for property tax.
The taxpayers' association had also recently spoken out in favor of an adjustment to the tax period.
"The much too short period of time for submitting the declaration of determination must be measured more generously - in any case by the end of January 2023," said association president Reiner Holznagel a few weeks ago.
The concern: Due to the scope of the real estate tax reform and the relatively short delivery period, the offices could face a tax confusion.
Köbler also warned of a possible overload to kreiszeitung.de from IPPEN.MEDIA.
Although some completed forms for property tax 2022 have now been received, the proportion of declarations in paper form is very large.
Too big to be precise: Many land tax assessment declarations would have to be laboriously reworked because information was either missing or incorrect.
In addition, the federal states can use their own model when calculating the property tax.
Property tax reform 2022: Tax return forms and problems at Elster cause delays
In the course of the property tax reform, almost 36 million properties in Germany have to be revalued.
This is done on the basis of information that owners now have to submit - the tax authorities have been receiving the data since July 1st.
In many places, however, the start of the assessment declaration for property tax did not go as planned: In mid-July, the “Elster” tax platform experienced technical difficulties and was temporarily unavailable.
The “property tax return for private property” service was only available at the beginning of July and only expanded its range a few weeks ago.
The service is now a good alternative when filling out the property tax.
Not least because of the delays, representatives of politics and tax authorities are calling for an extended submission deadline for property tax 2022, which, according to the new calculation, is to be levied from 2025.
While the proportion of property tax returns submitted is still relatively low, the federal states are probably not yet alarmed.
It was recently expected that the number of declarations of determination could increase significantly after the summer months.
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Calculate property tax 2022: Expert warns of massive property tax increases
The bureaucratic effort is already having an enormous impact on the annual tax revenue of around 15 billion euros.
But in the coming months it could become apparent that this could increase significantly - and that may not be due to homeowners and property owners in Germany.
“I am very concerned about the hesitant implementation at city and municipal level.
Extrapolations and preparations would have to be made here long ago in order to adjust the assessment rates.
Otherwise there is a risk of massive property tax increases," Köbler warns
kreiszeitung.de
.
However, according to the federal chairman of the tax union, an increase in the property tax should be clearly avoided, as it could ultimately lead to a dangerous imbalance.
However, the municipalities must act at this point.
Because: “Regardless of the property tax model, it is ultimately the cities and municipalities that decide on the actual amount of the property tax with the assessment rate,” says Köbler.
Calculation of the property tax 2022: declaration of determination is just the beginning
What many owners in Germany do not know is that the property tax value, which is determined on the basis of the property tax assessment declaration, is ultimately only part of the property tax calculation.
Combined with the property tax base number, the tax offices in Germany determine a property tax base amount.
In a further step, the municipalities combine this amount with the assessment rate to determine the local property tax.
Since the recalculation of the property tax could theoretically lead to a difference in the property tax amount, municipalities or cities would be required to take countermeasures with the assessment rate in order to keep the property tax amount at a similar level to the current level after 2025.