97% of Property Owners in Bavaria Submit Declarations 🔜
It's official – according to Mediengruppe Bayern, a whopping 97% of property owners in Bavaria have submitted their property tax declarations. This staggering figure comes after multiple deadline extensions in the region.
As reported by Mediengruppe Bayern, the Bavarian State Tax Office has disclosed that most tax notices have already been sent out. Should you receive a notice indicating a significant increase in property tax, local authorities will have to react and consider adjusting the assessment rate.
The Bavarian state government has made it clear that property tax revenue for municipalities should not surpass pre-reform levels after the reform, as per the authority's spokesperson. However, the determination of the assessment rate remains at the discretion of municipalities.
Say Goodbye to the Old Assessment Model by 2025
Come 2025, Bavaria will bid farewell to its existing property tax assessment model, which has been deemed unconstitutional by the Federal Constitutional Court. The Bavarian state government opted for its unique calculation method, finding the federal model too bureaucratic.
Instead of the federal model's value-based assessment, incorporating factors like the year of construction and standard land value, Bavaria will implement a pure area model. The local authorities will retain the revenue from property tax in this new setup.
Key takeaways for Property Owners
- Despite ongoing property tax reforms, municipalities retain the freedom to decide the assessment rate (Nuremberg regional news).
- Some Munich property owners may be concerned about potential property tax hikes (Munich regional news).
- Munich real estate investors can view the shift to a pure area model from 2025 as a unique opportunity for property investment assessment.
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Additional Insights
While the sources do not explicitly outline a shift to a pure area model in Bavaria, they do discuss the possibility of alternative taxation models like tax zoning. However, these conceptual theories are primarily relevant to Polish taxation systems and not a current practice in Bavaria or any other German state. The assessment rate in Bavaria would continue to be influenced by the assessed value, location-specific coefficients, and local factors, without any clear shift to a pure area model. Additional updates or documentation from German tax authorities would be required for precise information on recent reforms and changes.
