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Coalition dispute over property tax : Olaf Scholz, the fidget

Bayern still have to wait a bit. Federal Finance Minister Olaf Scholz (SPD) has submitted its draft legislation to the Federal constitutional court demanded a Reform of the property tax now and the Cabinet colleagues. In April the Minister round to decide the template. Until then, the colleagues may Express any concerns.

The special request from Munich, the CSU would have liked to have implemented, however, is not included in the design: an opening clause for the benefit of the country, or even a real deviation right. Thus, the CSU-calculus, would have to Bayern then implement the unloved, Scholz-model that has tinkered the Vice-Chancellor, together with the great majority of his country colleagues. But you could make a white and blue scheme. And which would have the effect of a land tax – in contrast to Federal law, which provides for a largely value-dependent tax as in the past.

Scholz: Everything is simple

Scholz praises his model is significantly simplified compared to the previous property tax of up to 30 individual value components, to the question of whether a bathtub is installed or not. In the future, it should be only five: standard land value, local rent levels, land and residential areas, building type and building age. For commercial real estate, there is a slightly different calculation.

This is the CSU and a part of the CDU (in the core of the economic wing), but value-dependent. They had propagated a pure land tax, but are not able to prevail with the Ministers of Finance. A control according to the surface to be less bureaucratic, easier for the taxpayer - and, moreover, matches the value no role.

especially to owners and landlords, whose properties have gained significantly in recent years, are likely to get from 2025 of their communities, higher property tax bills. The apportionment of the lands among the tenants. A land tax would reflect these value differences are less pronounced. However, almost all the countries and also the local government associations (and property tax flowing to municipalities) are opposed to a pure land tax.

dispute basic law questions?

Bayern but don't want to let loose and Scholz does not want to lock obviously. Prime Minister Markus Söder of the CSU land group chief Alexander Dobrindt recently, the Federal Minister of Finance, and have highlighted your concerns again. They wanted a state opening clause authorizing a "value-independent model," said Dobrindt on Tuesday. This is compatible with the basic law.

If you look at the in-house Scholz, however, the question is – where for the clarification of constitutional issues, the Federal, first and foremost, the Ministry of the interior is responsible, led by Horst Seehofer (Federal Ministry of justice may also have a say). It could come to a koalitionären Interpretation of which is disputed by the basic law.

opening clauses, so it looks the Federal Ministry of Finance to let your own countries regulations only in a close-sized scope. The right of Derogation, however, a few years ago new in the Constitution included, would allow a kind of parallel legislation of countries – possibly even so far that the Bavarian desire would be possible. Only this countries law not yet in control of things – so before the basic law would need to be changed.

resistance in the Union group

Scholz, however, must consider the possibility of further resistance in the Union Bundestag group. Group Vice Andreas Jung insists, among other things, to the fact that the Living with the land tax reform must not be more expensive. The tenants levy is, however, controlled by the ancillary costs of regulation, therefore, Scholz sees itself as not competent – but as the whole of the SPD, in principle, open to their Modification.

And the Young-the opening clause for the countries don't want to, even if most of the countries you want to – in the Bundesrat, there has always been a large majority in favour of a Federal solution. Young said on Tuesday: "If a country wants to it can your own control." Between Kiel and Konstanz there are a lot of differences, for example between city-States and countries. "We want to allow, therefore, Federal diversity and tailor-made solutions. Without country-opening clause, we do not agree with the Reform.“ The proposal by Scholz is not matched, and thus "not a draft of the coalition".

In the Background is the hope of an opening clause, however, the preferred surface model to implement, even if only from country to country. Boys, baden-württemberg, the CDU is also behind the approach.

Make the local authorities?

Scholz, of his bill, convinced, said on Tuesday it could go "somewhat relaxed approach to the matter". The massive increases compared to the previous reviews he wants to dim a very low tax base rate of only 0,00034 so far, the can reduce the rate of the municipalities. Nothing wants to the policy is less than a debate in the cities and municipalities in the form of higher rates.

More about

dispute property tax special wishes from Munich, columns of coalition

Albert radio

However, Scholz can't andieren against the local autonomy incoming. But he seems to be sure that the Reform will not be exploited to fill the local tax coffers better than before. After all, the associations have indicated that, by agreeing to the goal of revenue neutrality. 14.8 billion euros, the real estate tax the municipalities currently – much more it's not supposed to be from 2025. But the actual effect of the width and the depth – that is, between countries and regions and within the municipalities, especially the large cities, is not to say at the moment.

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