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2h ago

Germany’s Top Tax Court Weighs Federal Property-Tax Model After Flood of NRW Objections

Decisions expected in mid-December will test the legality of the model’s standardized valuation metrics.

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Der Bundesfinanzhof (BFH) in München verhandelt am Mittwoch über die seit Januar erhobene neue Grundsteuer. Auf dem Prüfstand steht das sogenannte Bundesmodell, das in elf der 16 Bundesländer genutzt wird.
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Overview

  • The Federal Fiscal Court heard three cases on the federal valuation model and expects to issue rulings in the second week of December, with the exact date to be announced after the hearings.
  • Roughly 1.6 million objections in North Rhine-Westphalia challenge assessments based on standardized net rents and official land values.
  • Lower fiscal courts in Cologne, Leipzig and Cottbus have previously found the model constitutional.
  • The high court has already required in urgent proceedings that taxpayers be allowed to prove a lower market value in individual cases.
  • The outcome carries major budget implications for municipalities, which took in €15.5 billion from property tax in 2023 that owners pay and landlords may pass on to tenants.