Hessen Parliament Debates Controversial Property Tax Reform

Critics argue the reform breaks promises of revenue neutrality, with many municipalities increasing tax rates beyond state recommendations.

The Hessian Parliament is set to debate the contentious property tax reform during its plenary session today.
Over 60% of municipalities in Hessen have reportedly raised property tax rates above the state's recommended levels, according to opposition parties.
The reform, initially promised to be revenue-neutral, has faced criticism for leading to higher costs for property owners and potentially for renters as well.
Municipalities argue the increased tax revenue is necessary to cover rising costs, additional responsibilities, and employee wages.
Property owner associations warn that the higher property tax, combined with high land transfer taxes, could hinder housing development in the region.