Berlin significantly reduces property tax assessment rate

BERLIN (dpa-AFX) – As part of the property tax reform next year, Berlin will significantly reduce the so-called assessment rate. As Finance Senator Stefan Evers (CDU) announced on Wednesday, in the future it will be 470 instead of 810 percent. The step is necessary to avoid unbearable burdens on property owners and tenants due to the new property tax regulations, he said.

Property tax is being reformed nationwide by order of the Federal Constitutional Court; new calculation bases will apply from 2025. Land and property owners were required to submit declarations containing a wide range of information. On this basis, the tax administration issued so-called property tax valuation notices.

But that says nothing about the actual property tax burden. The assessment rate and the so-called measurement number must also be taken into account. And the latter value will also change in 2025: In order to avoid a higher burden on residential properties compared to other areas, the tax figure will be changed in favor of inhabited properties, as Evers explained.

The senator emphasized again that the goal of the property tax reform is more justice. It is expressly not about increasing the state’s revenue. Property tax is one of the most important sources of income for municipalities. In Berlin last year the volume was around 860 million euros./kr/DP/mis

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