Interest groups criticize the planned property tax increase in Hanover
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“Inconsiderate”: tenants’ association and real estate owners’ association criticize the planned increase in property tax in Hanover
Housing costs are rising: the city wants to raise property taxes.
© Source: euroluftbild.de/Hans Blossey
Hanover. The city of Hanover is groaning under an introduced debt burden and therefore wants to increase fees and taxes – above all the property tax. The plans are now being met with criticism from both the property owners’ association Haus und Grund and the tenants’ association. “In view of the current, already extremely high ancillary costs, this is excessive and ruthless,” says Mady Beissner, Managing Director of Haus und Grund. Reinold von Thadden, legal counsel at the Hanover Tenants’ Association, also considers the increase to be “unacceptable”.
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The city wants to increase the assessment rate for property tax by around 100 points and thus generate additional income of 25 million euros per year. From 2024, the higher tax rate will apply. In a nationwide comparison, Hanover would have the second highest rate of assessment of all state capitals after Berlin.
Annoyed: house and land manager Mady Beissner considers the property tax increase to be “excessive and ruthless”.
© Source: Tim Schaarschmidt
Tenants’ association: the city is reaching out
The real estate owners’ association has no understanding for this step. Once again, the city is creating financial leeway at the expense of citizens whose housing costs are also increasing, says Beissner. The tenants’ association criticizes the fact that property tax can be passed on to tenants in full. “Basically, the tax has no place in an ancillary cost statement,” says von Thadden. He also believes that the city is far too long. “If tenants of an 80 square meter apartment have to pay 60 euros more a year, that’s a significant increase,” says the tenants’ association legal advisor.
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Displeasure: Reinold von Thadden, legal counsel at the tenants’ association, finds that the property tax is not passed on to tenants.
© Source: Samantha Franson
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CDU: Housing is becoming more expensive
It remains to be seen whether the property tax will actually rise to the planned level. The Council must agree to the area, and the green-red coalition still wants to consult internally. The CDU thinks the increase in property tax sends the wrong signal because it makes living more expensive. “The CDU will not support a restructuring of the city treasury at the expense of the citizens,” says CDU faction leader Felix Semper. Incidentally, it is absurd that the city spends millions of euros on housing programs and then gets the money back through a higher tax rate. The FDP also wants to consult.