Older Homes' Property Tax Break: An Idea Disputed in Lower Saxony
Opponent Spurns Tax Reduction for Elderly Homes - Old homes up for purchase on the market
Here's the thing about property tax: some folks in Lower Saxony want a break for older houses. reason? Old-timers often require more maintenance than shiny new builds, and their value may be lower, too, according to the Haus und Grund owners’ association. So, why not factor in the year of construction when calculating this tax?
The idea: forget new buildings after 2022 - they're on their own. But older homes need a break - an age factor that gradually reduces the tax burden, down to 0.3 for houses from 1972 and earlier, they say. Sounds fair, right?
Well, not so fast. The Ministry of Finance in Hanover ain't buying it. The age factor concept don't seem to fit with Lower Saxony’s property tax model, and it ain't got no future, they argue. Here's the deal: the tax burden in Lower Saxony ain't distributed based on property value, but on benefits for the owners. It's all about the square footage and location within the municipality (the area-location model).
Moreover, implementing an age factor for over three million properties isn’t that practical, the finance department explains. The rules would be complicated, affecting differently aged building parts and renovations, requiring additional declarations and repeating the mass procedure for the reform, they say.
While some municipalities in Lower Saxony are increasing their property tax rates for 2025 despite political assurances, one in five communities has set a rate above the revenue-neutral rate. The upshot? Property owners are feeling the pinch.
But wait, there's more: lately, many Lower Saxon municipalities have bumped up their property tax rates for 2025, despite political promises that property tax reform should not lead to overall higher tax revenue. The Taxpayers' Association cites data from 85% of Lower Saxon municipalities: one in five communities has set a rate above the revenue-neutral rate. Additionally, some municipalities may still adjust the rate for the current year upwards by the end of June.
So there you have it - a tax break for older homes is facing resistance in Lower Saxony. Fiscal pressures and concerns about equity in tax policy may have something to do with it, but we can't say for sure without more info.
- The proposal for a tax break for older homes in Lower Saxony, which considers the year of construction in tax calculation, contradicts the existing property tax model implemented by the Ministry of Finance in Hanover, making it questionable whether it will be integrated.
- Despite some municipalities in Lower Saxony proposing an age factor for older homes to reduce property tax burden, the idea of disregarding new buildings after 2022 and implementing an age-based tax break faces skepticism due to practicality concerns, complexities in implementation, changes in existing rules, and potential impacts on the equity of the tax policy.
