Property Tax 2022: Homeowners must file a new tax return from July

Property tax is payable not only on new buildings. Owners have to pay annually. The property tax is currently being reformed in 2022 (symbol image).

© Julian Stratenschulte / dpa

The new property tax 2022 brings a lot of work with the new tax return. Owners must submit a declaration of determination from July.

Berlin – Property Tax 2022 is a topic that is engaging a lot of people in Germany right now. Millions of home and property owners in Germany have already received mail and have been asked to file a property tax return. Depending on the federal state, this separate and new tax return may require a lot of work: while the old property tax base loses its validity at the end of 2025, landlords need to cooperate with tax offices and thus move forward. real estate tax recalculation.

New Property Tax 2022: Landlords must submit a new tax return along with the assessment declaration

Not surprisingly, landlords in Germany will face real estate tax in the coming months, but they have not always received their mail from the tax office. But sometimes it is in a hurry to collect all the necessary information for documents for property tax 2022. Depending on the calculation model, more detailed research may be necessary. Incidentally, the deadline for the new Tax Return for Property Tax 2022 is October 31st. At worst, anyone who does not notice it risks severe penalties.

However, in order for the necessary property tax information to be properly filed, home and homeowners need to consider several things: The challenge is that states can deviate from the federal model when calculating property taxes and are allowed to use their own models. As a result, other information is required to provide the basis for the conversion. However, it is clear which forms will be filled in for property tax in 2022: several federal states have published forms for inspection.

New Property Tax 2022 Approaches: The Federal Constitutional Court has already declared the tax invalid in 2018.

The current property tax assessment was quashed by the Federal Constitutional Court in 2018 because it was inconsistent with the Basic Law. At the core of the obstacle were outdated standard values ​​that violated the prohibition of equal treatment. For this reason, a property tax reform has been initiated and must be completed by 2025. At the turn of the year, the transition period expires and the old property tax calculation becomes illegal.

For landlords in Germany, this means that property tax will have to be paid on the old basis of assessment in the next few years. However, as the collection of new property tax data for 2022 begins as early as July 1, home and land owners will need to work with tax authorities to establish new property tax values ​​and tax bases.

Property Tax 2022: How do I submit a declaration of assessment? Submit your property tax return with Elster

Landlords and homeowners in Germany have to submit data to the tax authorities from July 1. This is done with a 2022 property tax return. This property tax return contains different information depending on the federal state and the calculation model used. The recommended method of submitting real estate tax for 2022 is “Mein Elster”. For this, users must have an account – you can use the same as for a tax return.

Anyone who does not have an account with Elster sometimes has to plan a few weeks to activate the access in order to be able to file the property tax documents in the correct form. In case of difficulties, it is also possible to submit a declaration of real estate tax 2022 in a paper form. However, while some federal states provide for a digital tax, the Free State of Bavaria chose a different route: here, real estate tax refunds were also possible, in principle, in paper form.

Submit your property tax return without Elster: “Property Tax Refund for Private Property” allows

As of July 4, the website will be available to Länder using the federal model for property tax reform. Owing to “Real Estate Tax Return for Private Property”, landlords in Germany can fill out Real Estate Tax 2022 forms without Elster. However, you need to register online and use an activation code.

Property tax conversion: How is property tax calculated in 2022?

As before, the property tax for 2022 will be calculated in a three-step process: first, individual tax offices value property based on property tax value, and then this value is netted against the tax rate. In a third step, the relevant municipality adjusts its assessment rate. The method of calculating real estate tax in 2022 remains unchanged. The difference, however, is in the revaluation of the property tax. Due to the real estate tax reform, it can be calculated in different ways depending on the federal state.

The data required for the property tax reassessment of homeowners and landlords varies depending on the processes the state uses. So there may be times when the amount of work will change from time to time.

Property Tax Declaration 2022: What forms do I need to submit in order to obtain a property tax

Paragraph 228 sec. 6 of the Act on Valuations provides that the declaration for the determination of the real estate tax 2022 should be sent electronically to the tax offices. In addition, individual Länder may authorize the submission of paper-based real estate tax return forms even in the event of difficulties or for other reasons. For example, in Bavaria, digital transmission was recommended.

What is Property Tax 2022?

The Property Tax 2022 is a tax that all property owners in Germany have to pay once a year. The beneficiaries of the tax are municipalities: they receive about 15 billion euros a year from property tax revenues – the money is allocated, inter alia, to to finance local infrastructure. Property tax is one of the most important sources of income for municipalities.

Which forms to submit for the new 2022 Property Tax also varies depending on the models used to calculate the Property Tax. Many Länder have now published the so-called 2022 Real Estate Tax Documents and Forms. They serve as a guide to the necessary data that owners must provide to the tax authorities. As announced by the Federal Ministry of Finance, electronic real estate tax declaration forms are to be available through “Mein Elster” from July 1, 2022. Along with the “Real Estate Tax Declaration for Private Property”, a simplified 2022 property tax filing option has also been created.

Federal Property Tax Model and State Property Tax Calculation Models

The 2022 real estate tax reform is already underway and introduces a number of property tax calculation models that have been decided by politicians. Because depending on the federal state, a different conversion base may sometimes be used. While the federal government determines the federal model used in Berlin, Brandenburg, Bremen, Mecklenburg-Vorpommern, North Rhine-Westphalia, Rhineland-Palatinate, Saxony-Anhalt, Schleswig-Holstein and Thuringia, the federal states have different models for calculating property tax for the year 2022. Review:

In Bavaria, there is an area model for property tax reform. Also in Baden-Württemberg, a modified model is used to calculate the property tax in 2022. A modified land value model should be applied. Hamburg selected the residential location model for recalculation. The area ratio model is used in Hesse. Lower Saxony uses the area location model. While some Länder deviate significantly from the federal model when calculating the 2022 real estate tax, only the revised tax rates are used in Saxony and Saarland.

Property Tax 2022: Landlords must submit a conversion declaration

While the 2022 property tax settlement deadline starts on July 1 and homeowners will almost certainly have a few questions, one thing is certain with the property tax reform: property tax will continue to be determined by three figures in the future. : property tax value, tax rate and tax rate. This also explains how the property tax in 2022 will be composed from 2025.

Which data and information will actually determine your property tax amount varies from state to state. The calculation may be influenced by, inter alia, the standard land value and net cold rent, as well as the type of property, area and age of the building.

Land reference value for property tax: recalculation starts on 1 July

The land value is used in some models to convert property taxes and is a value derived from the average price of a number of similar properties. It should not be confused with the price of the land. As a rule, the standard value of the land is established by a commission of experts and is given per square meter.

2022 Property Tax Refunds: This now goes to homeowners and homeowners

Due to the property tax re-charging in 2022, landlords in Germany will have a lot of work to do in the coming months, but ultimately the additional tax return may also pay off for them. As the former basis of calculation used sometimes very outdated values, there were occasions where the real estate tax was found to be unjustified in some places.

While landlords need to sort their property tax documents in a timely manner, the reform has been clearly criticized for months: consumer ombudsmen in several federal states have criticized the scope of the information and demanded a reassessment of the property tax in 2022 to be simplified to avoid overwhelming landlords.

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