Second Home Tax: Often Afflicts Low-Income Individuals, Primarily in Berlin and Brandenburg Cities
In the Berlin area and various large cities within Brandenburg, the second home tax is primarily imposed on private vacation homes, students, or commuters with a second dwelling. An astounding 246 municipalities across Brandenburg levied this tax in 2022, as reported by the Berlin-Brandenburg Statistical Office.
A Notable Exception: Brandenburg an der Havel
While other independent cities, such as Cottbus, Frankfurt (Oder), and Potsdam, actively collect second home tax revenue, Brandenburg an der Havel stands out as the only city in Brandenburg that does not impose this levy.
Cottbus, Frankfurt (Oder), and Potsdam Impose Second Home Taxes
Cottbus, Frankfurt (Oder), and Potsdam are the cities in Brandenburg that levy second home taxes. For residents with a second home in these cities, the tax is based on living space and fixed rates that are tiered based on furnishings and apartment type. In Cottbus, this tax accounts for approximately 0.06% of total revenue, with revenue fluctuating between 248,000 euros in 2020 to 318,000 euros in 2022. Frankfurt (Oder) follows a flat rate tax model with exceptions for specific properties.
Varying Models Exist for Second Home Taxes
Oranienburg in Oberhavel introduces staggered tax rates, distinguishing between three zones based on location: far from water, up to 300 meters from the water, and directly on a body of water. The tax rates range between 4.50 to 7.50 euros per square meter per year. Since this tax revenue does not bring significant income to the city, Oranienburg's 2023 budget plans approximately 195,000 euros in revenue from the second home tax, or 0.14% of the entire budget.
In Eberswalde (Barnim), the second home tax is also levied with three different zones, with varying rates depending on the property's location. Residents in Eberswalde's city center pay 7.48 euros per square meter, while the outer districts are subject to 6.20 euros and 4 euros. In 2021, this tax brought in approximately 58,500 euros, or around 0.06% of the total budget for Eberswalde.
Second Home Tax Revenue in Germany
Municipalities in Germany argue that the secondary home tax helps offset additional costs incurred from using municipal infrastructure, such as roads, parks, and swimming pools. According to Jens Graf, Managing Director of the Brandenburg Association of Towns and Municipalities, financial equalization between federal states and municipalities is another primary reason for collecting the tax.
Revenue from the second home tax is typically considered a small portion of municipalities' overall budgets, with many cities pointing to administrative fines for non-declaration or non-reporting of second homes as a way to protect their income. Failure to comply with these regulations can result in significant administrative fines.
The Escape from Second Home Taxes
While municipalities may collect second home taxes, some cities, like Eberswalde, are strict about enforcement. Residents who fail to declare a second home are committing an administrative offense and can face fines of up to 5,000 euros.
However, attempting to avoid this tax can come at a higher price. In Eberswalde, the authorities discourage residents from using this tactic due to the potential fines and administrative consequences, as well as the potential implications on eligibility for municipal services and benefits.
The Influence of Broadcasting Fees on Second Home Taxes
In Germany, the tax on second homes - specifically, the "Rundfunkbeitrag" or radio tax - is not applicable. Following a ruling by the Federal Constitutional Court (BVerfG), which deemed the radio tax incompatible with the Basic Law, residents in Germany are exempt from paying the radio tax for their second homes as of November 2019[1].
Conclusion
Municipalities across Brandenburg have different approaches to imposing second home taxes, with some cities collecting much-needed revenue and others, like Brandenburg an der Havel, opting to waive the levy. Some cities, such as Cottbus, Frankfurt (Oder), and Potsdam, rely on this revenue to make up a small proportion of their overall budget, while others, like Oranienburg and Eberswalde, rely on regionalized models to varying degrees.
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