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After 31 years: City of Starnberg increases trade tax

2024-02-21T10:22:15.751Z

Highlights: After 31 years: City of Starnberg increases trade tax. City expects several million euros in additional income from this. A razor-thin majority of 15:14 votes rejected the proposal. The lower assessment rate has had no effect on commercial settlements in recent years, says Dr. Thorsten Student. The city of Weilheim has increased its assessment rate to this value, explained managing director Ludwig Beck. Fürstenfeldbruck and Wolfratshausen, for example, are already at 380.



As of: February 21, 2024, 11:04 a.m

By: Peter Schiebel

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The city of Starnberg expects more income from increasing the trade tax assessment rate (symbolic photo).

© Jens Schicke/Imago

The trade tax rate in the city of Starnberg has been stable since 1993.

That's changing now.

As part of the budget consolidation, the city council decided on Thursday the first increase in 31 years.

He expects several million euros in additional income from this.

Starnberg – Increasing the trade tax rate is generally considered the last resort in local politics.

Only when the administration and the local council no longer know how to help each other financially will this instrument be considered - there is too great a concern that established companies will move away or potential newcomers will no longer come if they have to pay more taxes on their profits.

This is exactly where the city of Starnberg currently stands.

At the start of the city council meeting on Monday, there was still a deficit of 3.5 million euros in their budget for the current year - despite large-scale fee increases and subsidy reductions that had already been implemented.

This is how a broad majority of 26:3 votes increased the trade tax rate from 330 to 380 percent.

It is the first increase in the district town in 31 years.

The city councilors were not happy with their decision.

“We consider the increase to be a very bad signal for Starnberg as a business location,” said CSU parliamentary group leader Thomas Beigel.

However, the additional revenue is sufficient to cover the deficit.

However, he believes it is “fundamentally important” to talk about it again in the fall with the aim of lowering the assessment rate again.

The trade tax for partnerships and sole proprietorships is revenue-neutral, explained Beigel, who works as a tax consultant.

“But two thirds of our trade tax comes from corporations, and they are affected.”

Eva Pfister from Alliance Mitte Starnberg (BMS) cited figures from 2019, according to which just over 800 companies had been assessed in Starnberg.

The strongest 15 of these were responsible for a quarter of trade tax revenue.

In 2022, the city collected around 23.2 million euros, more trade tax than ever before in its history.

Pfister did not assume on Monday that the tax rate would be reduced again.

“We have to be honest with ourselves.

What’s up stays up,” she said.

Possible additional income of 4.5 million euros would correspond to the increased expenditure on district levies and personnel costs.

Mayor: “Just a black zero this year is not enough”

The city administration had calculated this 4.5 million euros as a consolidation volume in the event that the assessment rate even increased to 400 percent.

The city of Weilheim has increased its assessment rate to this value, explained managing director Ludwig Beck.

“We expect that other district towns will also increase the assessment rate to 400 points,” he said.

Fürstenfeldbruck and Wolfratshausen, for example, are already at 380. Beck also reminded that the city will have to shoulder around 40 million euros by 2027.

Among other things, Starnberg is planning to build a new elementary school to replace and expand the Schlossberg School, which is in need of renovation, and a new fire station to meet modern fire protection requirements.

“It will not be possible to balance the budget without a drastic increase in trade tax,” said Beck.

Mayor Patrick Janik also warned: “Just a black zero this year is not enough.”

Starnberg City Council's proposal of 400 percent goes too far

However, the proposed increase to 400 percent went too far for the city council, for Dr.

Johannes Glogger (WPS), for example, was disproportionate.

A razor-thin majority of 15:14 votes rejected the proposal.

Dr.

Thorsten Student (UWG) finally applied for 380 percent.

The lower assessment rate has had no effect on commercial settlements in recent years, but it still gives the city “at least a little bit” of a location advantage over other district towns, he said.

Patrick Janik also saw the impact on commercial settlements as limited and cited Pöcking (240 percent) and the state capital Munich (490 percent) as examples.

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While Tim Weidner (SPD) described an increase as “no alternative” despite the already heavy burden on companies, Marc Fiedler (FDP) rejected it outright and called for “addressing the fundamental structures”.

Ludwig Jägerhuber (CSU) also emphasized this.

“We can’t move forward with just fee and tax increases,” he said.

The personnel situation in the administration must be considered in the same way as the possibilities for using artificial intelligence.

Also read:

By the way: Everything from the region is now also available in our regular Starnberg newsletter.

You can find even more current news from the Starnberg district at Merkur.de/Starnberg.

Source: merkur

All news articles on 2024-02-21

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