Old homes granted property tax reduction opposition - Properties Offering Old Homes for Purchase
Here's the skinny on what's happening with property taxes in Lower Saxony, where the Home and Property Owners' Association thinks old houses deserve a break. They argue that older homes are often cheaper and require more TLC, so the tax man should take that into account when calculating property tax.
Their proposal? No adjustments for new buildings after 2022, but gradually lower property tax for older homes, down to a factor of 0.3 for homes built in '72 and earlier. The association believes this reflects the true worth of the taxed properties.
A petition for this age value factor is circulating at the state parliament, but it's a long shot - it's only got over 400 signatures, far short of the 5,000 needed for the committee to discuss it in a public hearing.
The Hannover Finance Ministry isn't exactly on board, either. They say the age value factor doesn't jive with Lower Saxony's property tax model and it ain't got no future, because in Lower Saxony, the property tax burden doesn't depend on the property's value, but on the benefits for the owners. Benefits are measured by plot size and location within the municipality.
Plus, introducing an age value factor would be a logistical nightmare, affecting more than three million properties and requiring new rules for different aged building parts and renovations. So, the ministry flat-out rejected the idea.
Meanwhile, many Lower Saxon municipalities are jacking up their property tax rates for 2025, despite promises that the property tax overhaul wouldn't mean a higher total tax haul. The Taxpayers' Association is keeping track, and one in five municipalities has raised their tax rate above the revenue-neutral rate, meaning some taxpayers are gettin' screwed.
In conclusion, while an age value factor could potentially lighten the tax load for older homes in Lower Saxony, it ain't in the cards for now. The tax hikes, though, are a different story. Keep your eyes peeled for any updates on this messy situation.
The Community Policy in Lower Saxony is currently debating an employment policy proposal from the Home and Property Owners' Association, which suggests harsher property tax for new buildings post-2022 and reduced tax for older homes, considering the maintenance and cost implications of older properties. This policy, however, clashes with the existing property tax model in Lower Saxony, as expressed by the Hannover Finance Ministry.
Meanwhile, in the realm of general-news and business, the promise of a property tax overhaul in Lower Saxony has been questionable, as various municipalities are raising their property tax rates for 2025, effectively increasing the total tax burden on residents. This situation, much like the age value factor debate, remains to be monitored closely.
