Overview
- In three test cases from Cologne, Berlin and Saxony, the Bundesfinanzhof ruled on December 10 that the Bundesmodell is not unconstitutional.
- Judges rejected challenges to the use of land-value maps (Bodenrichtwerte) and statistically derived rents, the core methods targeted by plaintiffs backed by taxpayer and landlord groups.
- The reform took effect on January 1, 2025, and many homeowners received higher assessments, with costs commonly passed on to tenants.
- Grundsteuer revenue totaled about €16 billion in 2023, making it a key funding source for municipal services such as schools, childcare and infrastructure.
- Most states apply the federal model, while Baden-Württemberg, Bavaria, Hamburg, Hesse and Lower Saxony use their own systems, and widespread objections and lawsuits continue across jurisdictions.