Overview
- Judges heard three test cases in November from owners in Cologne, Berlin and Saxony challenging the federally designed calculation method.
- The contested model is in force in eleven states, while Baden-Württemberg, Bavaria, Hamburg, Hesse and Lower Saxony use their own laws that also face legal challenges.
- State finance courts have largely upheld the recalculations so far, though the Federal Fiscal Court signaled doubts in 2024 about how standard land values were determined in two matters.
- The taxpayers’ association has backed plaintiffs, saying the system relies on blunt averages and results in significant additional burdens.
- A ruling against key elements could open paths for owners to join pending revisions or seek relief, and broader constitutional questions may ultimately be decided by the Federal Constitutional Court.