With the Reform of the basic tax taken out, Olaf Scholz, on a little adventure. Although the risk is manageable. But there’s a risk: How the new property tax from the year 2025, in fact, in a particular case will affect, in the case of owners, such as tenants, you know, specifically, if the law is the end of 2019 and if the calculations are possible. Until then, it is allowed to be speculated. However, you should beware of, well, massive tax increases, or to expect huge savings compared to the Status quo. The aim of the Minister of Finance of the Federation and the länder, above all, by Scholz, is as follows: revenue neutrality. Therefore, it should come at the end of not more than 14 billion euros, which provides the tax today the municipalities. Presumably it will be a little bit more, after all, it occurs only in some years. So far, So good.

But revenue neutrality is a–, the hiding place is behind the end of the new distribution effect of the tax something else. Because the decision of the Minister of Finance (without Bavaria), the value-based model of Scholz, means a larger spread. Between the less attractive parts of the city and the sought-after quarters of significant differences. The orientation on the ground provides a reference value, and the Scholz added component of the net cold rent can the vapors, but in case of doubt also in the other direction. The flat-rate assessment of notional Rent and land value zoning makes the case for the administrations that are handy and is also likely to reduce the spreads. But apart from the values of run that changes nothing.

Small wealth tax

And this is the core issue of fundamental tax reform. Each value model is ultimately a small wealth tax. However, it is in principle nothing to say. Who has a more valuable property, is usually more powerful than the owners of less valuable ground together with house. The real Problem starts with the levy on the tenant. You will in the future be, taxed in accordance with the adjustment of the tax to real values of the assets and the performance of the losers. Completely independent of your own performance. The idea that potent tenants are to be found in good locations, and the less affluent in the cheaper areas, like to apply for new leases. But not for existing tenants. But after all the rent increases in the past few years, solid in Large and University cities, then a related increase in the get in addition to costs. That Rent can be significantly below the average level, so it is still, so to speak, be billed separately, acts as the admission of a bad design.

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Reform of the land tax, Olaf Scholz, and the Power of Bavaria

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not a part of the reason for that is legally tax. You will be in the operating regulation. But from a tenant perspective the shooting. As from a tenant point of view, matter may be, whether a value-based model, as of the Ministers decided, or a surface model, as it is Bavaria, and the Union faction in the Bundestag would like to have. Although Scholz has indicated that it will not go to exorbitant amounts of money when it comes to increases. But why tenants, who are a few years or a half life in your apartment, and finally, in many places, with rent increases far above Inflation have been confronted and has to be paid in a few years, therefore, a higher levy is not clear. Even if it will only be 60, 80 or maybe 100 Euro. It is not your wealth that is being taxed. So did the Federal government and the countries would be well advised to rapidly agree on a settlement of the levy.