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Longer deadline for property tax returns – but problems remain

Many property owners are breathing a sigh of relief. They now have until January 31, 2023, to submit their property tax returns. However, the extension does not resolve the difficulties many people are experiencing with the forms and the recording system.

The property tax return should have been submitted by October 31 of this year. However, by the beginning of October, not even a third of property owners had done so. This was not because the remaining property owners were lazy, but because the recording system and the forms in the Elster program were "not well thought out at all," said tax advisor Oliver Hagen in an interview with Der Spiegel. However, the deadline extension at least gives owners time to obtain information they are waiting for from other authorities in time.

Lodge an appeal

Some points in the property tax return are not clearly defined, Hagen notes. For example, what counts as a core renovation? Living space and usable space are also not precisely defined. Hagen therefore advises filing an appeal immediately after receiving the property tax assessment, which is expected to reach owners in 2024. There is one month to do this.

Hagen assumes that the property tax value will be too high in many cases. An appeal stops the deadline from expiring and gives owners the time and opportunity to check the property tax assessment notice carefully. The appeal can also be withdrawn without penalty. It is best to seek advice from an expert in this matter.

Violation of the principle of equality?

The old property tax was abolished because, according to the Federal Constitutional Court, it violated the principle of equality. Hagen believes that this also applies to the calculation of the new property tax and expects that it will continue to occupy the courts for a long time to come.

Ask a tax expert

If you are unsure about how to fill out the Elster forms, you should consult a tax advisor. Depending on your region, it can be difficult to find one in Germany. In Berlin, for example, many tax advisors are so overworked that they are not taking on new clients. The search for a tax advisor may therefore take a little longer.

Property tax returns can only be submitted electronically

Since the tax authorities are in the process of digitizing property data, property tax returns must generally be submitted electronically. Only in certain exceptional cases is it possible to submit a paper return. An ELSTER (electronic tax return) user account is required for electronic data transmission. If you do not yet have an account, you should register as soon as possible, as you will receive your password by post, which can take a few weeks.

Are you unsure what is important for calculating property tax? Contact us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

Photo: © Francescoscatena/Depositphotos.com

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