ghost
2019-02-03 12:18:20
- #1
Niloa, it is the same for him. And I think such an anti-speculator regulation will be included there as well.
As far as I am informed, the reform (according to faz) plans the reintroduction of property tax C on undeveloped land. The aim here is primarily to make land speculation more expensive.
Actually, I just wanted to express my joy about Chancellor Scholz’s handling of the new regulation. Of course, the good man does not come up with the idea of not re-regulating the matter and thereby abolishing property tax.
If the Federal Constitutional Court had not forced Scholz or the legislator, he would not have done it.
Why? There is little to gain for him, it is work, and most importantly the property tax does not flow to the federal government but to the municipalities!
Even though it is often nicely said here: property tax is certainly useful because of municipal infrastructure, etc... Taxes are by definition always unconditional! Unlike levies and fees.
What the municipality then does with the entire tax revenue is the municipality’s business. It could also use 60% of the property tax to pay off debts.
A crucial point about whether it will become more expensive later has only been mentioned tentatively here so far:
The behavior of the municipality should go through the reform as currently planned. This very decisive player is not even at the table.
The equation is: standard value x tax assessment rate x municipal multiplier.
If the reform remains as currently planned, the "standard values," or better said the assessment basis, will partly rise exorbitantly. Especially in East Germany. (see faz calculations)
For the reform to be truly "revenue neutral," many municipalities would have to reduce the multipliers by up to 50%. Whether that actually happens then depends on the individual case and is the big unknown.