Construction costs are currently skyrocketing

Then they should introduce an additional property tax, but please with a discount for owner-occupiers and small landlords. It would also make speculative vacancy less attractive

As soon as it comes to one’s own wallet, people get creative. :D a) the property tax costs as much as it costs (after the reform) and b) this is about construction costs here. Money has to go into the empty coffers! ;)

I assume that just like with the BWR, the theoretical value of the house also applies for the property tax assessment. The newer it is, the more revenue can theoretically be generated. However, other factors would of course also have to be considered, such as swimming pool, basement, the standard of the house, etc.

Fortunately, one no longer has to "assume" anything, as the factors are now known and largely uniform throughout Germany. Land reference value with size of the property, type of property, plus living area and statistically determined net cold rent (rental level of the city/district), age of the building. That's it.

It's not that I don't think a reform would be sensible or that I wouldn't be willing to pay more. But when it nearly increases tenfold, the fun stops. That can really hurt some homeowners in Berlin.

It's not that I don't think a reform would be sensible or that I wouldn't be willing to pay more. But with an almost tenfold increase, the fun stops. That can really hurt some homeowners in Berlin.

If the BWR is used as the basis for calculation, it will probably not be much different in the Berlin area sooner or later. In our case, the BRW (one doesn't want to suspect anything bad) increased by 150% when the property tax recalculation was introduced.

It is not that I do not believe a reform would be sensible or that I am not willing to pay more. But a nearly tenfold increase is where the fun ends. That can really hurt some homeowners in Berlin.

The assessment rates will be newly set in 2024. Overall, the same amount of property tax is supposed to be raised nationwide as before the reform. The distribution will just shift a bit. Without adjusting the assessment rates, one would quickly have to pay 1,000 euros for a new building in rural areas. The assessment rates will be adjusted, but no one can currently say to what level.