Title: Revamping Urban Mobility: Empowering Cities to Finance Public Transport Upgrades
The government is considering handing over the power to local authorities to finance the growth of their public transportation systems through a local transport levy. This move could enabling urban centers and municipalities to introduce a mobility pass, thereby generating extra income for public transportation enhancements. According to reports by Südwestrundfunk, this innovative approach could reshape the way cities and towns fund their public transport infrastructure.
Transport Minister Winfried Hermann (Greens) is advocating for cities with a population of over 20,000 residents to have the liberty to pick from four variants of the local transport levy. The first option involves charging all residents, while the second focuses on car owners. The third option pertains to employers with ten or more employees, who would then be required to pay a certain amount per employee. The fourth and final option involves implementing a toll, although it would not apply to freeways and major roads. Ultimately, the municipalities would maintain the power to determine the exact levy amount their residents would pay.
In return for this fee, citizens should receive a credit towards local public transportation usage. This credit could be redeemed for purchasing season tickets. The draft bill stipulates that a reliable public transportation alternative to personal vehicles must be available during normal traffic hours. Factors such as frequency during peak times and proximity to the nearest stop are considered when evaluating whether this condition is met.
At present, the Ministry of Transport is coordinating the law between various state government departments. The exact timeline for the law's presentation to the state parliament for discussion and passage remains unclear.
Insights:
- Stuttgart in Baden-Württemberg could potentially adopt this local transport levy as per the draft of the state mobility law.
- Minister Winfried Hermann presented several options for the levy, including taxes on residents, car owners, employers with substantial workforces, or tolls.
- If citizens undertake this fee, they should be compensated for public transportation use, as emphasized by Winfried Hermann in a press interview.
- The aforementioned law is currently being harmonized among different state government departments and has yet to be debated and passed by the Baden-Württemberg state parliament.
Land Value Tax (LVT) in Baden-Württemberg
Germany's Baden-Württemberg has introduced a modified version of the land value tax (LVT), which began implementation in 2025. This modification levies an annual tax of 1.3% on land value, with tax reductions for specific land uses such as social housing, forestry, and cultural sites.
Impact on Cities and Municipalities
LVT provides a mechanism for local funding through land value capture. By targeting land values, LVT encourages efficient land use and generates revenue for municipalities, which can be allocated to public services and infrastructure projects, including transportation.
Local Transport Levy
While the particulars of the proposed local transport levy in Baden-Württemberg are not apparent, it is likely that such a levy would aim to generate revenue specifically for public transportation projects. The concept of local funding mechanisms for public services and infrastructure projects is consistent with LVT.
Regional Subsidies for EV Chargers
Baden-Württemberg offers regional subsidies for EV chargers through the Charge@BW program. This program provides funding for publicly accessible charging points and electrical installations, contributing to the growth of charging infrastructure.
In conclusion, while the details of the proposed local transport levy are not provided, the context of local funding mechanisms in Baden-Württemberg suggests that such initiatives aim to generate revenue for public services and infrastructure projects, including transportation. The LVT in Baden-Württemberg provides a model for how land value can be utilized to fund public services, encouraging efficient land use and generating revenue for municipalities.
