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Germany's Ground Tax Reform Stirs Confusion and Discontent

The nationwide overhaul of property tax assessments has led to financial discrepancies, administrative burdens, and widespread appeals from property owners.

  • The 2025 Grundsteuerreform, mandated by the Federal Constitutional Court, introduced new property valuation methods to replace outdated systems from 1964.
  • Municipalities across Germany, including Dresden, Wermsdorf, and Frankenthal, report significant administrative challenges and a surge in appeals over tax discrepancies.
  • While the reform aimed for 'revenue neutrality,' some property owners face sharp tax increases, with cases like Mügeln seeing up to sixfold hikes in Grundsteuer B for certain properties.
  • Cities like Dresden have already corrected numerous tax assessments downward due to successful appeals, raising questions about initial calculation accuracy.
  • Local governments are grappling with financial uncertainties, as varying property valuations and unresolved appeals complicate revenue projections.
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