Overview

• The Gemeinderat is set to vote on June 26 on raising the property tax B rate from 270% to 360% and the business tax rate from 390% to 400%.
• The property levy increase is projected to yield 6.3 million Euros and the business levy change 1.3 million, closing most of the city’s 7.6 million gap.
• Tübingen’s initial 270% levy was based on limited data under the Bodenwertmodell, unintentionally reducing revenues by about 2 million Euros.
• Under Baden-Württemberg’s Bodenwertmodell, only land area determines taxable value, prompting municipalities to adjust rates for revenue neutrality.
• The Bund der Steuerzahler argues the backdated hikes break the neutrality promise while officials warn credit approvals and construction projects could stall without additional funds.