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Property tax: Orchard becomes a cost trap

2022-11-29T11:33:53.990Z

Property tax: Orchard becomes a cost trap Created: 11/29/2022, 12:18 p.m By: Patricia Huber With the property tax reform, some owners could also face higher costs. This is also the case with an owner from Lower Bavaria – he was in for a cost shock. Munich – Property owners must submit the new property tax return by January 31, 2023. But the fear of the result is already great. Many owners fear



Property tax: Orchard becomes a cost trap

Created: 11/29/2022, 12:18 p.m

By: Patricia Huber

With the property tax reform, some owners could also face higher costs.

This is also the case with an owner from Lower Bavaria – he was in for a cost shock.

Munich – Property owners must submit the new property tax return by January 31, 2023.

But the fear of the result is already great.

Many owners fear having to pay significantly more with the new calculation.

And for sure, some owners will have to dig deeper into their pockets.

So did the 70-year-old Richard Huber from Lower Bavaria.

Property tax: In the future, owners should pay more than twelve times as much

He was already struggling with the new property tax return, he told

focus.de

.

Huber had already "tortured himself through Elster" in August and now received the new property tax notice.

But then the shock: In the future he should pay 2549.69 euros in property tax per year.

For comparison: Previously, the tax was 198 euros.

Huber is now supposed to pay more than twelve times the old value.

Huber's case is special.

Because few have as much reason as he does.

The property is 16,000 square meters.

On it is an apartment in need of renovation of 105 square meters and 100 square meters of office space for his insurance agency.

The remaining area is an orchard and a field.

Up until 1968 his parents farmed there as a sideline - today he calls it a "natural paradise for insects and birds".

But exactly this paradise could now become a cost trap after the property tax assessment.

Property tax return: important distinction can cost a lot of money

When asked, the tax office explained that the decision was correct, provided the specified areas were correct.

But there could still be an error, as a

focus.de

inquiry at the State Tax Office shows.

"The extreme increase in the amount of property tax [...] could at best be based on the fact that the taxpayer himself declared the meadow orchard at property tax B and not at property tax A, as was previously the case," says the responsible authority.

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This means that if Huber has specified the area for orchards in property tax B, this leads to a significantly higher tax.

Because all areas listed in A, for "agricultural", are usually cheaper.

This is also explained by the State Office for Taxes: "An area that belonged to an agricultural and forestry operation remains in this allocation until the agricultural and forestry operation is given up for income tax purposes or the area is used for other purposes.

The meadow orchard of a part-time farmer also remains in property tax A.” Richard Huber will in any case lodge an objection and “let's see what happens,” he made clear to the online portal.

(ph)

Source: merkur

All news articles on 2022-11-29

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