Rheinland-Pfalz Proposes Changes to Controversial Property Tax Reform

The proposed amendments aim to address municipal concerns but face criticism for insufficient solutions.

The Rheinland-Pfalz government plans to introduce a bill allowing municipalities to set differentiated property tax rates for residential, non-residential, and undeveloped land.
Municipalities have criticized the proposed changes, arguing they do not adequately address the increased burdens imposed by the federal property tax reform.
The CDU opposition warns that the legislation could disadvantage municipalities by shifting responsibility without providing clear solutions.
The reform follows a ruling by the Federal Constitutional Court requiring updated property valuations, affecting 2.5 million properties in Rheinland-Pfalz.
The proposed changes leverage a federal clause allowing states to tailor property tax regulations to local conditions, though municipalities are not mandated to adopt them.