Property tax now also due for the garden?
What you need to consider
Created: 01/16/2023 11:37 am
By: Constantin Hoppe
Due to the property tax reform, all property owners must submit a declaration by the end of January 2023.
Gardens should also be taken into account.
Frankfurt – Many homeowners are probably currently brooding over the due property tax return.
Due to the property tax reform, all property owners must submit a corresponding declaration by October 31st.
This is possible online via the ELSTER portal.
Gardens may also be subject to property tax under certain circumstances.
Because the ownership of orchards or allotments is part of agricultural or forestry use under tax law and is therefore reflected in the property tax return, explains the Hesse tax office on its website.
property tax reform | |
|---|---|
Affected | All property owners |
Deadline | January 31, 2023 |
Property tax and garden: That's why the declaration is necessary
In 2018, the Federal Constitutional Court declared the current system used to assess property tax to be unconstitutional.
The reason was that it violated the principle of equal treatment, which is laid down in the Basic Law.
This tax inequality arose from the fact that the values of land and buildings have developed differently in East and West since 1935 and 1964.
As a result, significantly different property tax payments can currently be due for comparable properties in neighboring locations, explains the Federal Ministry of
Finance
.
This is no longer possible with the new regulation.
The ownership of allotments must also be taken into account in the property tax return.
© Ralph Lueger/Imago
Property tax 2023: when the garden must be declared in the declaration
Good news: Gardens surrounding a house do not count as agricultural or forest land.
Irrespective of their use, they belong to the real estate and are included in the calculation of the real estate tax amount with the respective area.
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The situation is different, however, if you own an orchard or allotment garden.
Because allotment gardens are usually taxed according to property tax A.
However, if there is a garden or holiday home with a covered area of more than 24 square meters on the property in question, it is classified as residential property.
This means that the higher property tax B for the property comes into play.
What must be stated in the property tax return for allotment gardens?
district
floor number
land area
use and type of use
In the case of forestry and agricultural use, the yield indicator and any livestock that may be present
(Source: Hesse tax office)
Property tax and garden: difference between ownership and lease
It is also important whether you are the owner or tenant of a property: Because only the owner is responsible for the property tax return.
Tenants of an allotment garden do not have to take any further steps, because the owner is either a private individual or a municipality.
However, if you own another property in addition to your residential property, a separate property tax return with the relevant data is required for this.
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