The entire principle is nonsense and reminds one of the time of principalities and counties, where everyone could levy their own taxes, tolls, and whatever else on their territories.
From German history, one can understand the almost compulsive tendency of Germans towards federalism. But unfortunately, it currently creates significantly more problems than it solves.
For example, if a municipality has a booming industrial company, it can lower the assessment rate and make the daycare free. The municipality 3 km away does not have that and has to raise the assessment rate until it squeaks, and the daycare also costs money.
The most absurd thing, however, is that I pay taxes on my property to the municipality. Upon purchase and then every year.