escalating property tax predicament in Solingen - CDU issues alarm over potential surge from 2028
In the heart of Germany, the city of Solingen is grappling with a property tax crisis that is putting a strain on homeowners, particularly retirees like the Schmidt couple. The Schmidt's property tax has quadrupled from 248 euros to over 1,080 euros per year, a steep increase that could potentially turn their retirement nest egg into a financial burden.
The rise in property tax is a result of a nationwide property tax reform aimed at making property taxation fairer and more reflective of current market values. However, for many homeowners in Solingen, the increase has been substantial, causing financial pressure.
Daniel Flemm, the chairman of the CDU Solingen and mayoral candidate, has warned about the potential consequences of the rising property tax. He emphasizes that the legally and technically possible introduction of differentiated tax rates is the deciding factor, and the CDU is ready to take responsibility for finding a fairer solution for Solingen.
Flemm suggests reviewing rural properties, stating that they can help create living space, but this would require zoning plans for housing gaps. He also proposes that the mayor issue a directive to the administration to systematically evaluate construction gaps before new areas are sealed off.
The city of Solingen plans to raise the tax rate to 801 percentage points to maintain around 40 million euros in property tax revenue despite the reform. However, the CDU proposes avoiding a blanket tax increase from 2028, suggesting a long-term, moderate, and predictable adjustment of the property tax, such as an annual indexing of 1 to 2%.
The state of NRW allows municipalities to introduce differentiated tax rates for residential and commercial properties to reduce residential utility costs. The CDU demands the introduction of differentiated tax rates from 2026, with 711% for residential properties and 1,048% for commercial properties, which would be revenue-neutral for the city but relieve around 42,000 households.
Flemm points to Bochum as an example, stating that it has shown it's possible to implement differentiated tax rates, and Solingen can do the same, provided there is political will. The city of Solingen, however, has chosen not to introduce differentiated tax rates citing technical hurdles.
Bernd Schmidt, a member of the Schmidt couple, has filed an objection with the tax office, but the official land value still counts as buildable land. The garden of the Schmidt's property is now being assessed as buildable land due to the property tax reform, further adding to their financial burden.
The rise in property tax and residential utility costs is causing financial pressure on both owners and tenants. The CDU is advocating for solutions that will provide relief and ensure a fairer property tax system in Solingen. The party is committed to finding a solution that will protect the retirement dreams of homeowners like the Schmidt couple.
The property tax reform in Germany, aimed at fairer distribution, has led to significant increases for homeowners in Solingen, causing financial strain. Daniel Flemm, the CDU's mayoral candidate, advocates for the implementation of differentiated tax rates to alleviate this burden, citing Bochum as a successful example. The CDU's proposed 711% residential tax rate would provide relief for approximately 42,000 households while maintaining revenue neutrality. The Schmidt couple, one of the affected homeowners, has filed an objection, but the official land value still considers their garden as buildable land, escalating their financial burden.
