The head of the Grimma tax office tells you how to read the notice

Grimma/Born. For many people, real estate tax recalculation is a burden and the paperwork is overwhelming. The received message appears as a sealed book. But if you don’t want to pay too much for your own house or apartment building, company property or holiday home from 2025, you should understand what the authorities have formulated. LVZ tries to zoom in on a dry but important subject. In an interview, Michael Fricke, head of Grimma’s tax office, explains what to consider when checking a property tax notice.

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Michael Fricke heads Grimma's tax office.

Michael Fricke heads Grimma’s tax office.

Grimma: 16,000 messages have already been processed

How many property owners in Leipziger Land and Müldenthal, for whom the Grimma tax office is responsible, have submitted this declaration so far?

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November 13 on the reporting date, 64,154 tax declarations were received by the Grimma Tax Inspectorate.

How many notices does the Grimma Tax Office now send out by post every day?

We do not record daily mail. In total, the “Grimma” tax inspectorate has already examined about 16 thousand

When do you think your home will have processed all the returns?

After the end of the calendar year 2023

How many employees just take care of it? Has the staff been increased?

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Yes. 29 people work in the field of “New Property Tax”.

What happens to those who do not explain?

The usual procedure for not submitting tax returns is reminders, fines, estimates, late payment surcharges.

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in 1935 initial estimates increase

“Determining the Tax Value of Real Estate” is in the mailbox. Strictly speaking, there are two announcements, namely the new amount of property tax. First look at the many numbers – and then the shock: the amount measured is much higher than before. The apartment used in the example is currently €25.05 per year, but will it rise to €41.29 in the future? like that

It is not true that the new property tax rate will always be significantly higher than the old rate. The increase in the real estate tax base under the new law can have several reasons. On the one hand, the new assessment is based on 2022. Compared to the previous 1935 estimates, these are not only newer, but also higher. On the other hand, the evaluations of individual objects could have been different. As a result, despite the significant reductions in the tax base numbers, the amount of the property tax base may also be higher.

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Federal constitutional judges and politicians have argued that the overall tax burden should not increase. How does it fit together?

The main goal of the reform is to remain generally revenue neutral so that all taxpayers do not pay more or less property tax. However, individual tax payments will change. Some will have to pay more property taxes, others less. This is an inevitable consequence of the new regulation required by the Federal Constitutional Court and is unavoidable given the current injustices due to the large differences in assessment due to reference to outdated values. I cannot say in general how the property tax payments of individual owners will change. The development of real estate values ​​varies greatly between regions, both in Saxony and in cities and municipalities.

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Let’s look at the numbers in the report, at the calculation of the tax value of the property. Standard land value is given. The interest rate on the property is specified in the Valuation Act. For apartment building owners, it is 3 percent. How clear. A discount of 4 to 4.5 percent is applied to rented housing objects. Let’s say I rented an apartment in a rental building. Is there a bigger, better discount?

For property interest rate assessment, it does not matter whether the property is owner-occupied or rented. The interest rate depends on the type of asset. In the example provided, the amount of the equity interest depends on whether the unit in the condominium is a condominium unit. A 3 percent real estate interest rate then applies. If the apartment building is classified as a rental, ie not divided into apartments, the real estate interest rate is 4 or 4.5 percent.

in 2018 microcent…

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