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Real Estate Tax Reform: What Is Now On Tenants And Landlords

in Germany by

Monday, 17.06.2019
12:54 pm

The compromise on the reform of the land tax, to which the Union and the SPD agreed on the weekend, obeys a brazen principle of grand coalition politics: they are moving, if only under pressure.

  

After months of hanging and sinking poll numbers, the government wanted and had to give a sign of action. In addition, threatened in the event of a lack of agreement tax losses of 14 billion euros in the municipalities, because the tax from the next year should no longer be collected. It was essential to avoid that.

  

The Bavarian state government is the winner of the months-long hustle and bustle, the loser is Federal Finance Minister Olaf Scholz (SPD). For a long time he fought for a nationwide regulation, in the end in vain.

  

The reform became necessary because last year the Federal Constitutional Court rejected the determination of the unit values ​​for buildings and land on the basis of which the tax has so far been determined. In the West, approaches from the sixties, in the east even from the thirties. They had to be updated.

  

Scholz found himself in an unpleasant situation again. Although he is not entitled to anything from the advent of the tax, he is responsible as Federal Finance Minister for their reform. The result hits everyone, not just homeowners, because they pass these costs to the tenants sooner or later. So Scholz had to invest political capital, knowing that he would not profit from the result. It did not pay for him.

  

That was because Scholz wanted to use the opportunity to set an example of practiced social democratic tax justice. He presented a complex model, in which other components should also be included as calculation variables for the value of a property in addition to the area, for example the net cold rent. So he wanted to achieve that a 120-square-meter apartment in Munich is more heavily loaded than a similar size in Rumpel on the Knatter.

  

Above all the Bavarians resisted. Too complex was the model from Berlin, they were, and pleaded for the right of the countries to go it alone. The property tax should be based on their ideas only on the area of ​​the property. That was socially unjust and led to a patchwork of different regulations, railed Scholz.

  

Nevertheless, he finally gave in: The result are opening clauses, they have made the agreement possible. This allows each federal state to specify its municipalities different tax determination parameters. This not least has an effect on the bureaucracy when the new tax rates are set – so far an important issue.

  

  

Is the regulation now found more unfair than the status quo? The answer is definitely no. The patchwork carpet described by Scholz as a vision of horror has been around for decades. Because each municipality can set the tax levy autonomously, comparable real estate is valued highly differently even today, and its owners are asked to pay the same amount. This will not change in the future.

  

It is also not true that in the future the resident of a Munich villa will only have to pay just as much land tax as the owner of an equally large peasant cate in Eitershofen. Decisive here, too, is the levy rate of the community, and this is likely to be a lot higher in the state capital than in the hamlet in Bavarian Swabia. The question of justice arises more within the communities, so if an apartment in the Munich trendy quarter Schwabing should be worth just as much as a comparable in the social hot spot Hasenbergl. But that's something the Bavarian politicians have to deal with.

  

More on SPIEGEL +

  

In general and nationwide, property tax will continue to apply in the future: sometimes the same is treated unequal and unequal, even the same – depending on where one lives. How much more expensive it will be for homeowners and tenants in the future, if at all, crucially depends on how the municipalities react to the new unit values.

  

The dispute over the property tax and the current compromise is not about questions of justice, but about the way in which they are levied. It is quite possible that after some time, other countries will take to the Bavarian path, because it turns out to be the less bureaucratic one.

  

A race for the cheapest taxation must not be feared chamberlain and state finance minister. The reason is trivial: a property, the name betrays, can not simply be relocated to a tax haven.

Coalition Summit In Berlin – Agreement On Property Tax: Countries Should Have Freedom Of Design

in Germany by

The coalition is aiming for a first reading in the Bundestag before the parliamentary summer break and that the legislative package on property tax will be passed in good time so that it can come into force later this year, according to a report published in Berlin early Monday morning Statement of the coalition. The coalition had reached agreement on all substantive issues for the future collection of property tax. Details were not mentioned.

According to information from the German Press Agency, the unification of the coalition leaders also envisages the – in particular demanded by the CSU – controversial introduction of opening clauses for the federal states. The countries would thus have scope for their own design options for property tax.

More about : What tenants and owners need to know about the opening clause

Compromise seems to involve opening clauses

Chancellor Angela Merkel (CDU) had in the Last week at a meeting of the German Tenants' Association in Cologne announced that the federal government this week will most likely present a bill. According to reports, Finance Minister Olaf Scholz (SPD) and the state of Bavaria had come together. Scholz had previously rejected opening clauses for all federal states.

The vice-chancellor has consistently applied a value-based model for all federal states, in which above all the value of the land and the average rent should play a role. On the other hand, Bavaria as well as some Union politicians wanted a calculation by area alone and demanded that the Länder deviate from the regulations at the federal level. On such opening clauses it seemed to end up running out. The Federal Constitutional Court had demanded a revision of the property tax by the end of 2019 because of obsolete tax bases. The reform had been argued for a long time.

Approaching Solidarity Surcharge

For six hours, the coalition leaders had deliberated and talked about land tax and the solidarity surcharge, land rent and climate policy. It had instructed the Federal Government to submit to the Bundestag until the end of August a bill to abolish the solidarity surcharge in a clear first step for about 90 percent of the payer by a tax threshold, it said after the meeting. This is enshrined in the coalition agreement, but has been controversial in recent months after parts of the Union demanded a complete abolition.

Controversy over land rent remains

An agreement was reached on the ground rent, which was also controversial among the coalition partners it not. However, the statement said the coalition had "the common goal of rewarding the lifetime achievement of people who have worked for decades, raised children, and cared for loved ones." For the purposeful design of the ground rent there is further discussion need. Most controversial was recently the demand of the SPD to introduce the basic pension without means test – this is rejected by the Union so far strictly.

In the video: To save his village, mayor gives away land of his community

Coalition Summit In Berlin – Agreement On Property Tax: Countries Should Have Freedom Of Design

in Germany by

The coalition is aiming for a first reading in the Bundestag before the parliamentary summer break and that the legislative package on property tax will be passed in good time so that it can come into force later this year, according to a report published in Berlin early Monday morning Statement of the coalition. The coalition had reached agreement on all substantive issues for the future collection of property tax. Details were not mentioned.

According to information from the German Press Agency, the unification of the coalition leaders also envisages the – in particular demanded by the CSU – controversial introduction of opening clauses for the federal states. The countries would thus have scope for their own design options for property tax.

More about : What tenants and owners need to know about the opening clause

Compromise seems to involve opening clauses

Chancellor Angela Merkel (CDU) had in the Last week at a meeting of the German Tenants' Association in Cologne announced that the federal government this week will most likely present a bill. According to reports, Finance Minister Olaf Scholz (SPD) and the state of Bavaria had come together. Scholz had previously rejected opening clauses for all federal states.

The vice-chancellor has consistently applied a value-based model for all federal states, in which above all the value of the land and the average rent should play a role. On the other hand, Bavaria as well as some Union politicians wanted a calculation by area alone and demanded that the Länder deviate from the regulations at the federal level. On such opening clauses it seemed to end up running out. The Federal Constitutional Court had demanded a revision of the property tax by the end of 2019 because of obsolete tax bases. The reform had been argued for a long time.

Approaching Solidarity Surcharge

For six hours, the coalition leaders had deliberated and talked about land tax and the solidarity surcharge, land rent and climate policy. It had instructed the Federal Government to submit to the Bundestag until the end of August a bill to abolish the solidarity surcharge in a clear first step for about 90 percent of the payer by a tax threshold, it said after the meeting. This is enshrined in the coalition agreement, but has been controversial in recent months after parts of the Union demanded a complete abolition.

No agreement on basic rent

An agreement was also reached among the coalition partners There was no basic rent. However, the statement said the coalition had "the common goal of rewarding the lifetime achievement of people who have worked for decades, raised children, and cared for loved ones." For the purposeful design of the ground rent there is further discussion need. Most controversial was recently the demand of the SPD to introduce the basic pension without means test – this is rejected by the Union so far strictly.

In the video: To save his village, mayor gives away land of his community

On Apartment Hunt – On The Madness To Find An Apartment In Munich – And How It Succeeded Anyway

in Germany by

Horrende prices, moldy walls and arrogant brokers are in the housing in Munich everyday. A (self-imposed) self-experiment.

Munich – Soaking wet from the rain and completely exhausted I throw myself on the couch of my girlfriend, where I stay this week. "I give up," I say. "You can live on my couch for as long as you want," she consoles me. I've been hunting for apartments for three days now. I'm rushing from appointment to appointment for up to ten hours a day. A promise is not yet in sight.

If Germany were a monopoly field, then Munich would definitely be the Schlossallee. The fact that nowhere is it more difficult (and more expensive) to find an apartment is well known far beyond the city limits.

But high rents seem to magically attract me. After leaving school in Munich, I lived in Amsterdam and London – and finally as a "runaway" in Magdeburg. Although the rents in Saxony-Anhalt's state capital are cheap in comparison (6 euros warm rent per square meter), it draws me back to the beautiful – but also very expensive – Munich.

"Only" an apartment in Munich

I already have the job with the Abendzeitung. Now I just need an apartment. My first appointment is in Schwabing.

The apartment smells pleasantly of wax – probably the polish of the brand new wooden floor. Installed in the apartment is just as new kitchen – like the wood floor everything bio and free of pollutants, the landlady assures me.

The apartment is so great at first glance that my critical self is looking for the hook. There are (in addition to the horrendous price per square meter of – no joke – 31 euros warm) two. The first: The landlady lives in the building and has a floor above the apartment her law firm. The second: She wants to meet my friend first personally and then decide if we may move in.

When I tell her he's in London on business and offers her a video call, she says without batting an eyelid, "That's not enough, if you're seriously interested, let him fly in early tomorrow morning. " In the evening I write an e-mail to the landlady – and say. I do not feel good about it. But to order my friend from London, and then live with our landlady for an excessively overpriced rent for Munich under one roof? Not really ideal.

I also have a hopeful appointment the next day: A friend moves out of her apartment on Columbus Square. She pays only 750 euros for 60 square meters. A public visit did not exist yet. That's why I see great opportunities when I go to the real estate agency.

Lottery without exact date: Zero planning security

Here I have a thick application folder, in which I reveal personal information such as employment contract, Schufa information, salary statements and even bank statements of me and my friend. Well, I'm not doing it. But I also know that I have no other chances.

"We decide by lot," says the annoyed employee, as I put her my portfolio. When is drawn, she does not betray. So zero planning certainty.

In the course of the day I see apartments that are currently an inaccessible construction site, as they are completely modernized (good rental price brake). And I see fully furnished apartments, where the ugly ugly facility for a whopping 6,000 euros to be replaced. But I also see real dream apartments. But not only the rent but also the application pile is correspondingly high.

In order to increase our small chances, I write a letter of motivation. In it I describe my friend and myself as the perfect tenants (reliable, calm, a lot of work and fewer parties). Accordingly, our candid photo is also stuffy, on which we take a walk in upscale clothes and – while posing for the photo – smile overjoyed.

However, although it is strongly recommended for apartment seekers in Munich, I quickly realize that such a letter for landlords is pretty much no matter. They are above all concerned with one thing: their income.

I am not only looking for housing portals, but also in social networks. Although I find no apartment there, but search ads our competition. And that is daunting: Against couples like her (28, dentist) and him (30, Lufthansa pilot), who are looking for a nice old town apartment with balcony and can pay up to 2,500 euros cold, we have no chance.

British friend gets to the disadvantage: "Too unsure about Brexit."

A dentist and a pilot certainly do not have to explain their job. I have to look at the sightseeing already ("journalist, you do not just copy everything from the Internet?" Or: "Does one still need that?"). That my friend is Englishman does not help ("That is too uncertain for us with Brexit, who will soon leave the country again.").

With every visit, my initial optimism shrinks. That's why I'm putting more sightseeing appointments into Wednesday. Sometimes I look at apartments every 30 minutes. I get up at 5 in the morning to print out a stack of new application folders. It's so big that I use two color cartridges.

Under time pressure, walk through the apartment once every visit and hand in my folder. Only one apartment remains in my memory because of the hustle and bustle of the appointment – and not in a positive sense. It is one of the last sightseeing tours of the day. The apartment on the busy section of the Tegernseer Landstraße is described as a three-room apartment.

That it is relatively affordable (15 euros warm per square meter, a real "bargain"), you can see: I stand despite appointment almost an hour for the visit, 30 minutes of it in the rain (the queue goes from the third floor to the outside).

Arrogant broker: "You can not find a flat in Munich."

The street is incredibly loud, it is raining. In front of me is a mother with a crying baby in her arms. In conversation I find out that she is a single parent and desperately looking for a new place to stay.

Totally drenched, I'm being received in the apartment by a realtor who can no longer be outdone in his arrogance. The object of desire described in the ad as a "light-filled space miracle" turns out to be a narrow, dark hole with moldy walls.

When I ask for the third room, the broker points me to a cubbyhole where I can hardly stand upright with my 1.65 meters – and that reminds suspiciously of Harry Potter's broom cupboard. "That's a joke," it bursts out of me. The broker takes his pen and crosses my name on the multipage list. "So you will not find an apartment here," he instructs me and calls up the next name. In his position one can only be arrogant, I think.

I run back to my girlfriend, drink a bottle of comforting wine with her – and am already planning to spend a few months on her couch. In no other city has the search for accommodation pulled me down as much as in Munich.

"Let's just say it could be more money"

The next day I go to eight more visits anyway. I can barely remember the apartments. Only to discouraging sentences such as: "Your partner is a freelancer? Very difficult" or "Let's put it this way: It could be more money that is available to you together."

But then suddenly my mobile rings. We were actually selected by a landlord! Quickly I look at the apartment again on the Internet – in so many applications I have lost track of.

The tiles in the bathroom could be less green, the apartment overall much more modern and the rent of course (where not in this city?) Lower. But the apartment is quiet, in direct S-Bahn-Nähe, has a balcony and a nice courtyard. And the main thing: It is an apartment in Munich.

This article was written by Emiliy Engels

Opening Clause – Agreement On Land Tax In Sight: What Tenants And Owners Now Need To Know

in Germany by

Bavaria has enforced information from government circles at Federal Finance Minister Olaf Scholz (SPD) an opening clause for the land tax. Whether the grand coalition joins in was initially open. The Länder would gain scope for the formation of the property tax with opening clauses. Chancellor Angela Merkel had announced on Friday that her cabinet will deal with a bill next Wednesday. However, it is still unclear whether and in what form the topic will play a role at the meeting of the Coalition Committee in Berlin on Sunday. The leaders of the CDU, CSU and SPD have so far failed to agree on a common approach to the reform at their meetings.

WHO PAYS THE LAND: The property tax is a tax on the possession of Land and buildings. Unlike the land transfer tax you pay them every year – owners and tenants, because landlords can use the utility bill. Most homeowners spend hundreds of dollars a year, and owners of apartment buildings often have to pay four-digit amounts.

WHY IT IS IMPORTANT: Land tax is one of the most important sources of revenue for local communities , It covers 15 percent of municipal tax revenue, from which roads, swimming pools, theaters and other things are paid. According to Federal Statistical Office, the total revenue last year amounted to 14.2 billion euros.

Land Tax: Federal Constitutional Court calls for new regulation

HOW IT IS CALCULATED: How much you pay depends on the place of residence, the property and the building on it. The last word is given by the municipalities – they set their own rates of levy, which make up an enormous amount. In principle, thousands of different tax rates are paid through these factors across Germany. Because the rates are very different: in 2017 they were in the approximately 11 000 German communities between 0 and 960 percent. For the same valued houses can be so in the one municipality 100, in the other nearly 1000 euros in land tax in the year become due.

WHAT TO CHANGE: The value of the property to calculate the tax offices so far Basis of completely outdated numbers – from 1935 in East Germany and from 1964 in West Germany. The Federal Constitutional Court has therefore demanded a new regulation by the end of the year.

This means opening clause for property tax

WHICH MODELS ARE THERE FOR THE NEW GROUND TAX: Scholz has so far been for a so-called value-dependent model pleads. Above all, the value of the land and the average rent should play a role. All around 36 million houses and undeveloped land would have to be re-evaluated.

Because real estate prices have risen significantly in recent decades, this would lead to massive increases in tax. Scholz therefore wants to adjust another factor in the calculation, the control measurement. But the last word is still left to the municipalities with their sentences. In 2025, the newly calculated real estate tax is to become due for the first time.

Bavaria fears great bureaucracy and costs if all plots of land have to be reassessed, as well as sharp increases in rents in urban centers like Munich. The state government wants a simpler model: the tax amount should be flat rate based on the area. That could make an opening clause possible. According to this, the federal states could supplement their nationwide property tax with their own regulations.

RESERVED AGAINST AN OPENING CLAUSE: Some countries fear that special routes exert pressure on all. The wealthy Bavarians will expect to be artificially poor with the area model and then profit at the end of the fiscal equalization, says Brandenburg's Minister of Finance Christian Görke (left). "This is the entry into harmful tax competition between countries."

WHAT A REFORM FOR CITIZENS MEANS: Some homeowners and tenants will have to pay less, others more. The bottom line, promises Scholz, the property tax revenue for the state should remain the same. Whether this succeeds is completely open – because of the lifting rates. Scholz and also the city day assume that the municipalities will refrain from additional revenue and lower the rates. "No mayor will survive if he does not lower the rate of levy if there is an increase in his community," says the minister. But he can not force them – and what if a city needs money in times of weaker economy?

In the video: key under the doormat? No burglar is guaranteed on this hiding place

Decision On Interior Ministerial Conference – Language Assistants Like Amazon Alexa And Google Home Can Not Be Intercepted

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                   Decision on interior ministerial conference: Language assistants like Amazon Alexa and Google Home can not be intercepted

            

    

At the conclusion of the Conference of Interior Ministers in Kiel, the interior ministers of the federal states have agreed on a resolution on the controversial wiretapping plans of language assistants: Alexa, Google Home or so-called smart TVs and refrigerators should not be admitted as evidence in court.

This was announced by Lower Saxony's Interior Minister Boris Pistorius (SPD) on Friday afternoon at a press conference in Kiel. Previously, there had been violent protests from privacy advocates against plans.

            

Smartphones and smart home devices collect data that can often provide in-depth insights into user activity. Therefore, it is not surprising that the data sets in the authorities arouse desires to prosecute or ward off crime. The technical details are quite complicated.

                   
                    
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Incorrect Planning And Cost Explosions – The Endless Glitches In German Cultural Buildings Have Terrifying System

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                   Incorrect planning and cost explosions: The endless glitches in German cultural buildings have a frightening system

            

    

The bursting opening of the Berlin City Palace is only the latest example of a series of bankruptcies, bad luck and mishaps in Germany's cultural buildings. A star architect sees the system behind it.

The project grew Richard Wagner over the head. Between the laying of the foundation stone and the opening of his Festspielhaus in Bayreuth, the composer went through four torturous years. The money went out, patrons sprang off. In 1878 he was finally able to inaugurate it. "I did not believe that they would be able to do it – the Emperor told me." This is how Wagner (1813-1883) remembered later.

Cost explosions, planning errors, bursting dates – cultural buildings in Germany, that shows Fall Wagner, rarely had it easy. Even younger examples are not lacking. From the Elbphilharmonie to the Berlin Stadtschloss: In the best case, the projects financed with tax money have to be readjusted, in the worst case, there are years of delays and scandals involved.

"Compared to other buildings, it works surprisingly well"

The now postponed opening of the Humboldt Forum in Berlin is comparatively light. The copy of the castle, which was built for 600 million euros, is within budget and, if all goes well, the problems with air conditioning and fire protection can be remedied relatively quickly. The officials in the Ministry of the Interior and Construction are expecting an opening in the coming year.

Architect Stephan Braunfels sees parallels with the construction of the capital city's airport BER, which has been dragging on for seven years, as being exaggerated. "Compared to other public buildings, the Humboldt Forum is doing remarkably well," says Braunfels, who designed two Bundestag buildings in Berlin and the Pinakothek der Moderne in Munich.

"Catastrophe Cologne Opera House"

That it often hapers in the building services, is no coincidence for the architect. Individual trades such as ventilation, heating, sanitary and fire protection would often be awarded without complete overall planning. However, because the public sector has to award its contracts to the most favorable provider, the quality suffers during planning. "The best planning office is often not the cheapest." The interaction of the technical systems then explode a "huge gap", "disasters" as in the Cologne Opera are the result.

Opera and Schauspielhaus have been redeveloped in the Dommetropole since 2012. The reopening was scheduled for November 2015. It was canceled less than four months before. The total cost of 250 million euros has been 460 million euros. Reason blatant failures in the planning and construction management of the technical equipment, said a manager. The people of Cologne are still waiting, the art business continues in alternative quarters.

From 77 to 900 million euros

The construction of the Elbphilharmonie may be considered a prime example of excessive costs. The estimated initial costs of 77 million euros for the "Elphi" construction on Kaispeicher A in the Port of Hamburg increased by more than eleven times to almost 900 million euros. An approach of 500 million euros should not even have begun, says architect Braunfels.

The too low calculations have a lot to do with politics, as it became clear at the Berlin State Opera. Instead of 239 million euros, the conversion cost more than 400 million, seven years dragged the renovation down. An investigative committee tried to shed some light on the subject.

Calculation of costs according to the salami tactic

The conclusion: bankruptcies, bad luck and mishaps mingled with the wishes of the landlords, which were overrated by critics. For expensive money, an underground connection between the opera house and the administrative and rehearsal rooms had to be dug into the Berlin mud floor. The hall ceiling was raised five meters to allow the music to resonate half a second longer.

The costs, which became clear in the commission of inquiry, were initially calculated to bring the project through the political authorities. After the salami tactic, they were then gradually increased. The federal government had capped its financial participation, Berlin remained sitting on the additional costs.

The Staatsoper Unter den Linden has been shining in the new plush for almost two years, the stage technology is at its best. Daniel Barenboim's house has been spared the fate of Richard Wagner's festival arena.

Wagner had to seek a loan from King Ludwig II of Bavaria to complete the theater on the Green Hill. The money paid back the family until 1906. However, the first festival with the "Ring des Nibelungen" became a financial disaster. After that the festival house was empty for six years.

In the video: When Merkel expects applause, there is deathly silence in the audience

flr / dpa

                            

Berlin – Rent Freeze Nationwide? Idea Heats Housing Debate

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In the debate on affordable rents, the demand for a nationwide Mietendeckel louder. After the left-wing faction in the Bundestag, the acting SPD leader Thorsten Schäfer-Gümbel spoke in favor of it. The goal is to freeze the rents in sought-after residential areas for five years largely, he said the "Tagesspiegel" (Friday).

A Mietendeckel is currently being discussed for the city of Berlin. There, a citizens' initiative also drove forward a referendum on the expropriation of large housing companies.

Rental price cap for the whole of Germany "highly problematic"

"We need the rent cover for all of Germany," said Schäfer-Gümbel the newspaper. "We will address this in the coalition in the next few days and make the subject," announced the SPD politician.

Opponents from the coalition came quickly: Union Fraction vice Thorsten Frei referred to a nationwide Mietpreisdeckel in an interview with the "Badische Zeitung" (Saturday) as "highly problematic". On the one hand because the rental market nationwide is not uniform, on the other hand because it dampens the incentive to build new. "And thirdly, it can be expected that before the entry into force of such a solution could lead to a large-scale Mietsprung to once again exhaust all possibilities on the part of landlords – although many landlords otherwise would not have considered."

In a Mietdeckel on federal level, it is according to Schäfer-Gümbel for a respite. "It gives us time to build, build and build again." New parts of the city had to be created and ways had to be found "to get work back into the country, so that people would not be in the situation of moving to agglomerations."

Distinction "according to age, condition and equipment of the Building "

In Berlin, the red-red-green Senate wants to advise on Tuesday about a key points paper to a Mietendeckel. If he gives his okay, a bill could be worked out.

The paper provides for freezing rents for five years. Too high rents should also be reduced on application. The housing industry reacted indignantly. The key paper serves initially as a template and is not yet carved in stone. The Berlin Senator for Housing, Katrin Lompscher (left), told the news magazine "Der Spiegel" that she wanted to differentiate the rental cover "by age, condition and equipment of the building."

The frustration of high rents in many places large. Especially in large cities, many find in affordable locations often no affordable housing. Again and again there are big rent demos in cities.

Little enthusiasm for Angela Merkel

Chancellor Angela Merkel (CDU) spoke on Friday as a guest speaker at the annual meeting of the German Tenants' Association in Cologne

The head of government had a difficult time, the audience considered their almost half-hour appearance with rather meager applause – from the point of view of the organization of interests, the federal government and the states do too little to alleviate the housing shortage in urban centers.

Association chief wants fines for excessively high rents

The outgoing Association leader Franz-Georg Rips renewed his demand for a basic right to adequate and affordable housing. He appealed to Merkel to do more. "Living is the social issue of our time." The government must finally take effective measures against ever-increasing rents – at least 200,000 new affordable rental housing in Germany are needed.

In addition, Rips spoke in favor of a change in the law: too high rents should be punished in the future as an administrative offense – then owners would have pay a fine if they overdo it with the rent claims.

Affordable Housing Has Priority

According to Rips, the Chancellor reaffirmed at the podium that affordable housing was a high priority for her government. So the federal government would continue to support the countries in social housing, although the corresponding financial obligations should originally expire at the end of 2019 – but it still goes on with billions of payments ..

Merkel made it clear at the same time that the housing shortage not only with state funding "but we have to create a climate where people like to build". And further: "The best answer to housing shortages is to create new living space." Investors who put their money into housing construction "must of course be committed to the common good," emphasized Merkel. "But it still has to be interesting for a group of people who are committed to this country to invest in housing."

The industrial union IG BCE and the Greens criticized Merkel sharply. Their speech did not go far enough.

Discussion on the expropriation of large housing companies

In addition to the rental cover in Berlin, the expropriation of large housing groups is being discussed so that apartments remain affordable. A citizens' initiative strives for the socialization of housing companies with more than 3000 apartments and wants to reach with a referendum specifically that the Senate drafting a law. It would be a nationwide one-time operation.

On Friday, representatives of the alliance "expropriating German housing and co." Handed over the Senate Department for the Internal Paper Stack with signatures collected since April. According to the initiative, exactly 77 001 came together. If at least 20,000 of the signatures are valid, the referendum is officially initiated. At the very end, a referendum could possibly come.

In the video: Markus Lanz: Lanz drives the CDU politician into the corner – he reacts snotty

Month Long Dispute Over Reform: Merkel Sees Agreement On Land Tax

in Germany by

            

              
              
                

            
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<p class= Especially the Bavarian government in Munich has hitherto resisted the reform plans.

                      

(Photo: picture alliance / dpa)

                      
                
              

After more than a year, the federal government and the states seem to have finally come to an agreement on new land tax legislation. Chancellor Merkel announces a bill in the coming week. Otherwise, municipalities are threatened with billions in losses.

              

In the months-long struggle for property tax seems to be an agreement in the coalition imminent. "We will probably introduce a bill next week," Chancellor Angela Merkel said in a speech at the German Tenants' Day in Cologne. She added, however, after which she expected "then difficult discussions in the Bundestag and Bundesrat". Merkel pointed to the complex situation. So there is "on the one hand, the very highly valued metropolitan areas", on the other hand, "we have vacancy". This means big imbalances.

Already on Thursday there had been reports of an approach in property tax. Accordingly, a bill could be adopted next Wednesday by the Cabinet. However, later it was said from the SPD faction that there was still need for discussion. "There is still no agreement," said the parliamentary executive director of the SPD parliamentary group, Carsten Schneider, the ARD.

The property tax must be revised after a court ruling until the end of 2019, because the unit values ​​used for the calculation are outdated , Otherwise, municipalities could lose 14.8 billion euros per year from January 2020 onwards. The draft by SPD Finance Minister Olaf Scholz provides for a value-based model for calculating the property tax. On the other hand, Bavaria and some EU politicians are in favor of a calculation based solely on area and demand for the Länder the right to deviate from the regulations at federal level.

Basic Law would have to be changed

According to Scholz, this is based on ARD information have now agreed. A spokeswoman for the Ministry of Finance said in Berlin, however: "The talks are still running." There is still no new state, not even what the appointment of the Cabinet refer to. It is unclear whether and in what form the topic on Sunday in the coalition committee of the Union and the SPD plays a role. The leaders of the CDU, CSU and SPD have not yet been able to agree on a joint approach to tax reform at their meetings.

Hesse's finance minister Thomas Schäfer of the CDU said that there was still a "final agreement" but " there is a lot of thinking about which direction to go ". Accordingly, it should amount to a change in the Basic Law in order to clarify the competencies of the Federation and the Länder, as well as the country opening clause demanded by Bavaria. Hesse would then consider making use of it, Schäfer said. He rejected concerns about unequal taxation. The main factor for imbalances in the land tax is anyway the municipal levy.

"If the countries were to be given far-reaching opportunities to deviate from a federal law, this leads to a fragmentation of laws," warned the Rhineland-Palatinate SPD Finance Minister Doris ancestors. However, stands for them "in the foreground that the property tax with a nationwide uniform basis for valuation remains intact."

Greens criticize the chaotic action GroKo

The FDP financial expert Florian Toncar accused Finance Minister Scholz that he "has no interest in a compromise", but just "enforce his model" wanted. Toncar emphasized that the government needed votes from the opposition to change the constitution. The Greens communal expert Stefan Schmidt accused the coalition of a chaotic approach to property tax.

The German Association of Towns and Municipalities again warned of a failure of the reform. "There must not be a loss of property tax," said General Manager Gerd Landsberg of the "Augsburger Allgemeine" and demanded compensation for this case.

Especially Bavaria had demanded an opening clause in the more than a year-long dispute with the federal government to carry out the tax reform on your own. The Free State categorically rejected Scholz's previous proposal for reform and instead wanted to impose a model in which the amount of the levy is based on the area of ​​the property. Until now, Scholz preferred a value-dependent model for all federal states: in calculating the property tax, the value of the land and the average rent should play a role.

Apartments: Those Who Renovate On Their Own, Must Bear The Costs Themselves

in Germany by

Federal Court: Renovations must bear the owner, who commissioned them – SPIEGEL ONLINE


apartments
Who renovates on his own, must bear the costs themselves

A homeowner invested in new windows and wanted to later transfer the costs to the community of owners. The Federal Court has now dismissed his claim.

  



Friday, 14.06.2019
10:46

Apartment owners, who arrange renovations on the building at their own expense, can no longer subsequently ask the owners' association to pay. This is true even if the work was actually a matter for the community and absolutely necessary, as the Federal Court of Justice (BGH) decided.

  

Any measure must always be decided in advance together. With this ruling, the judges from Karlsruhe want to prevent owners' communities from being confronted with unforeseen demands from one day to the next (ref. V ZR 254/17).

  

The plaintiff, who had invested around 5,500 euros in new windows in 2005, does not see this money again. The man from Hamburg was convinced that each owner is responsible for his own windows – as all the time in the complex with more than 200 apartments.

  

It was not until years later that a BGH judgment in another case proved that the Community was actually responsible. The man then wanted to have his expenses replaced.

  

  

beb / dpa

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