Overview
- The Federal Fiscal Court dismissed three challenges from owners in Cologne, Berlin and Saxony, confirming the legality of the federal model used since January 2025.
- The judges ruled that using averaged land values and reference net rents is permissible, with the 2nd Senate stating such pauschal methods are constitutionally acceptable.
- The ruling covers the Bundesmodell applied in 11 states, while separate cases targeting state-specific systems in Baden-Württemberg, Bayern, Hamburg, Hessen and Niedersachsen are still pending.
- Existing assessment notices remain valid, and owner groups including the Taxpayers’ Association and Haus & Grund plan to seek review by the Federal Constitutional Court.
- The reform followed a 2018 constitutional court rebuke of outdated valuations, has triggered about 2.8 million objections and over 2,000 lawsuits, affects tenants via pass-through costs, and its overall revenue neutrality will be clearer once full 2024/2025 data are published.