The Federal Fiscal Court considers the Baden-Württemberg property tax model to be constitutional. The modified land value model remains permissible.
- State property tax law is constitutional
- The area and the standard land value are decisive
- More legal certainty for local authorities, administration and owners
The Federal Fiscal Court today confirmed the Baden-Württemberg State Property Tax Act. The highest German tax court considers the so-called modified land value model to be constitutional and thus follows the assessment of the Baden-Württemberg tax court.
Decision creates legal certainty
Finance Minister Dr. Danyal Bayaz: "Today's decision by the Federal Fiscal Court is good news. The court confirms that our state property tax law is based on a reliable and constitutional foundation. We deliberately opted for a simple, transparent and unbureaucratic model. It is precisely this approach that has now been confirmed by the court. The decision creates important legal certainty for cities and municipalities as well as for property owners."
Simple land value model
According to the court, Baden-Württemberg was allowed to choose a simple land value model for property tax B. The land area and the standard land value are decisive for the valuation. Buildings, development or special circumstances of the individual case do not have to be included in the valuation. The Federal Fiscal Court refers to the legislator's leeway and the fact that blanket rules are permissible in a mass procedure such as property tax.
In the course of the property tax reform, Baden-Württemberg had opted for its own simple land value model. The reform had become necessary after the Federal Constitutional Court declared the previous property tax unconstitutional in 2018 due to outdated valuation bases.