Experts' suggested response on the constitutionality of the recently imposed land tax
In a recent development, financial authorities have considered adjusting property values for real estate tax assessments, a move that has both beauty and unsettling aspects, according to Kai Warnecke, President of Haus & Grund.
The adjustment is possible, even with a significantly lower proven common value, as suggested by Viktoria Lück, a tax consultant at RSM Ebner Stolz in Cologne. However, this is not currently provided for by law.
If the deviation from the common value is at least 40 percent, tax offices are instructed by the decrees of the top financial authorities of the states to change the real estate tax assessment notice.
Property owners who believe the determined property value exceeds their property's actual value by 40 percent or more can apply for a suspension of enforcement at the tax office. No real estate taxes based on the notice will have to be paid until a decision is made in the main case, if a suspension of enforcement is granted.
The exact time for property owners to apply to the tax authority for securing a deferral of payment due to potentially disproportionate property tax assessments is generally linked to the period following a natural disaster or similar extraordinary events, with specific deadlines such as October 31 to apply for a special exemption certificate that allows tax relief measures.
It's important to note that if the deviation is only slight, it is still not possible for the assessment to be corrected downwards, according to Viktoria Lück.
The planned real estate tax reform starting in 2025 is being questioned for potential unconstitutionality. Despite this, top financial authorities of the federal states are attempting to save the potentially unconstitutional new real estate tax with new decrees. However, these decrees do not apply if the deviation is only slight.
Viktoria Lück's comments offer valuable insights into the potential adjustment of real estate tax assessment notices based on the new decrees of the financial authorities of the states. A detailed interview with Viktoria Lück and further recommendations for property owners can be found in the monthly magazine €uro, available in stores from August 17 and as a digital edition.
For property owners who may be affected by these changes, it's crucial to stay informed and seek professional advice to ensure their rights are protected.
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