Ludwigsburg is planning a property tax increase: What consequences do citizens expect?

Ludwigsburg is planning a property tax increase: What consequences do citizens expect?

The city of Ludwigsburg is considering increasing property taxes. The assessment rate is currently 262 percentage points, but city treasurer Harald Kistler points out that the city's current property tax revenue of 700,000 euros falls short of the required revenue. This could change as early as 2024 due to an adjustment of the assessment rates, as krzbb.de reports.

In order to act in a revenue-neutral manner, the assessment rate would have to be increased to 272 percentage points. This increase would primarily serve to offset the loss of revenue. However, the administration is already proposing an increase to 285 percentage points from 2026, which could bring the city an additional annual income of one million euros. Kistler emphasizes that the data situation has changed significantly since the last tax adjustment, which makes an adjustment necessary.

Planned increases and political discussion

The discussion about property tax is already in full swing. Klaus Herrmann from the CDU is in favor of an increase from 2027, while Jochen Zeltwanger from the Free Voters currently sees no possibility of implementing an increase immediately. Sebastian Haag from the FDP expresses the wish for a change to the area model under a new state government. In contrast, the SPD's Daniel O'Sullivan has concerns but recognizes the need to take inflation into account.

In the political debate, Carina Kuhnke from the AfD has also expressed concerns that the population will not accept such an increase. Mayor Matthias Knecht explains that the city is burdened with an additional 22 million euros in debt and appeals to the council to support the draft austerity package.

New property tax and transparency register

The property tax reform, which will be implemented from January 1, 2025, is based on a modified land value model that became necessary following a decision by the Federal Constitutional Court in 2018. Property owners then have to pay property tax, the amount of which is determined by the local council using the assessment rates. The Ministry of Finance of Baden-Württemberg has now published a transparency register that shows the assessment rates required for revenue neutrality, as fm.baden-wuerttemberg.de communicates.

However, these new assessment rates are non-binding as the municipalities decide on them independently. Nevertheless, the register is intended to serve as a guide to ensure the stability of property taxes. The calculations in the transparency register are based on the old property tax amounts, which could potentially lead to shifts in burdens for the owners. In this context, there is additional information about the revenue neutrality of the assessment rates at grundsteuer-digital.de.

The final decision on the planned austerity package and the possible increase in property tax will be made in the local council on June 25th, which is causing tension among the citizens of Ludwigsburg.