The property tax must be reformed at the urging of the Federal Constitutional Court. The finance minister’s plan burdens all city dwellers and can lead to rent increases.

One of the reasons for the reform draft: Finance Minister Scholz could use it to tax the large, expensive properties more heavily.  However, this also affects other owner and tenant groups.

EWill we soon see the yellow vests in Germany? Will citizens soon be protesting on the street full of anger and anger – and then not just against driving bans in city centers, but against higher taxes? Tax increases are not actually planned, on the contrary, at least the solos should be abolished for most of them. But what Federal Finance Minister Olaf Scholz plans to do elsewhere could result in a substantial additional burden.

A few days ago the minister presented his highly controversial bill for a new property tax. The Federal Constitutional Court had obliged him to do so. It saw the existing rules as unfair because the same facts are taxed differently. The FAS had some real cases calculated on the basis of the draft – and in some cases found dramatic increases. In almost half of the examples, the tax at least doubled. In an extreme case from Dresden, it rose by more than 4000 percent, from 31 to 1538 euros per year. The absolute highest increase hits a homeowner in Berlin, whose property tax increases by 7,600 euros. The big cities are particularly affected, with some cutbacks in their surrounding areas. But property tax would also usually rise in the flat country – albeit less strongly.