Over the past 24 hours, details of the new property tax position by the federal government have been laid out.
For decades, there were two basic structures for property tax (one from West Germany and one from East Germany). The German Constitutional Court came up and said that both were designed in some unfair way, and gave the federal government roughly 18 months to develop a new situation.
So this modern property tax method? It's in basic terms and has yet to be drafted out and voted upon. This ought to be done by early summer.
In theory.....the value of the building/structure/home will be given MORE consideration than the current method. Adding into it....will be land values itself, the age of the house structure, and the average rental cost.
Will property taxes go up? This is what various housing associations now suggest and there is some worry among working-class Germans that they might see a 50-percent or more rise in property taxes.
Here's the thing about the current tax program and city management.....all combined throughout all of Germany....the cities need around 14-billion Euro in property tax collection, to run their towns. This covers fire departments, roads, streets, lamp posts, bridge renovation within a city, city parks, etc.
If this goes badly and some folks get bills in 2020 that greatly exceed their old property tax? The blame will get put upon the CDU/CSU and the SPD folks. It could be a major part of the 2021 election as massive anger erupts over an escalation of property taxes.
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