According to the negotiators, the federal and state governments have agreed on the cornerstones of the real estate tax reform. The talks had come to a "reasonable result," said Finance Minister Olaf Scholz (SPD) after consultations with his country colleagues. He had now been asked to come forward with a bill, which should be adopted by the end of this year. Scholz spoke of a "big milestone".
Hesse Finance Minister Thomas Schaefer (CDU) said that originally proposed by Scholz model had been significantly debureaucratized. The Federal Constitutional Court had set a deadline for policy by the end of 2019 for a new regulation.
Bavaria has further fundamental concerns. The Bavarian Finance Minister Albert Füracker (CSU) said that the country would not agree with the model that is now on the table. Scholz had sought a solution in the consensus of all countries.
Scholz wants a so-called value-dependent model, in which the property values, the age of buildings and the average rental costs are used. Bavaria, on the other hand, demanded a surface model in which the tax amount is based on a flat rate.
The property tax is one of the most important sources of municipal income with revenues of € 14 billion a year. The Federal Constitutional Court had demanded a new regulation until the end of 2019 because of completely outdated tax bases.