Overview
- The Federal Fiscal Court rejected three test cases from Berlin, North Rhine-Westphalia and Saxony, confirming the legality of the reform’s Bundesmodell.
- The ruling covers the model used in 11 states, while separate cases targeting the distinct systems in Baden‑Württemberg, Bavaria, Hamburg, Hesse and Lower Saxony are pending.
- Judges said lawmakers may rely on generalized average rents and land values in a mass tax for practicality, a position delivered by the 2nd Senate under chair Franceska Werth.
- Existing assessments remain in force; owners can seek corrections only in narrow circumstances, typically by proving a large valuation gap, with reports citing a roughly 40% threshold.
- Haus & Grund and the Taxpayers’ Association will file complaints to the Constitutional Court; roughly 2.8 million objections and more than 2,000 lawsuits highlight ongoing friction as municipalities count on about €16 billion a year and many costs flow through to renters.