The German Association of cities in the planned model for the Reform of the property tax the right way. It should take into account the value of land and buildings stronger. “Now, a correction is in sight, one of the most important taxes of the municipalities can be collected in the future in line with the Constitution,” said chief Executive Helmut Dedy.

the Federal government and the Länder agreed on Friday on a basic outline for a compromise. In the future, the age of buildings and the average rent for the evaluation of the basic values are to be used accordingly, especially the Property tax. FDP and representatives of the business had asked for, however, is rather a flat rate calculation according to the area, whether it’s a Villa in the fillet location, or to an old house in the country.

Dedy supports the value model. “It is fair if the value of land and buildings is included in the taxation,” he says. Quickly now, a law had to be draft, submitted, no later than Easter. “This is necessary so that the land tax, as by the Federal constitutional court requires, shall be regulated by the end of this year.” Otherwise, you would cease to apply from 2020.

“we need The cities of the land tax with their volume from a current rate of 14 billion euros in order to Finance parts of their infrastructure for the citizens,” stresses Dedy. The property tax contribute to the construction and renovation of schools, kindergartens, swimming pools and roads. Dedy says, however, that by the new rules, especially in sought-after areas with higher values of the tax assessments are sometimes even higher than previously could be.

review: “bureaucracy and armed wave”

Against the proposed tax compromise is also substantial criticism is directed. The President of the real estate Association IVD Jürgen Michael, speaks of a “rotten compromise” and criticized: “Send the vertices so that the result will be a bureaucracy monster.”

the Central property Committee (ZIA) warns of a “high administrative burden”. President Andreas Mattner criticized: “to be the Motto of the now proposed, the key points seems to be: why simple, if it’s a complicated one.” It is a systematic deprivation of the politically desired and urgently needed new building for the threat.

The leading Association of the housing industry GdW warns of a “in many cases, the strong increase in costs especially in the case of affordable rented housing in otherwise expensive areas. More dark clouds for the affordable Housing.”

The German Institute for economic research (DIW), argues for a pure land value tax. This would be not only easier, but also associated with positive incentives for efficient land use, explains the head of DIW and a real estate economist Claus Michelsen in Berlin.

The Federal government, the taxpayer rejects the model. Thus, the assessment will be hugely bureaucratic and expensive. “You also need to set the courts on many disputes,” says President Reiner wooden nail.

fok/dpa