After the deadline: 56,000 property tax declarations still missing

One year after the deadline, the Saxon Ministry of Finance has still not received all property tax declarations. "Based on the number of declarations received to date, around 56,000 declarations are still missing across Saxony," the ministry said in response to an inquiry. This means that a total of around 1.8 million declarations had to be submitted in the state by the end of January 2023.

According to the Ministry of Finance, more than 1.5 million of the declarations received have been processed so far. "Currently, only a few declarations are still being received by the tax offices," it added. In cases where owners have not yet submitted a declaration, reminders are sent out first. Around 442,000 reminder letters were sent out in Saxony in April and May last year. If no declaration is submitted, the tax offices estimate the basic value. In the event of a late submission, the offices can also impose a late surcharge.

According to the offices, around 285,000 appeals against notices on the property tax valuation and around 207,000 appeals against notices on the property tax assessment had been received by the end of last year. The Ministry of Finance confirmed that some outdated values from 1935 are being replaced by current values as part of the implementation of the property tax reform. This will inevitably lead to deviations from the previous measurement amounts.

However, it is not yet possible to say whether this will lead to a corresponding decrease or increase in the property tax burden from 2025. This depends on the level of the property tax rate applicable from 2025, which the respective city or municipality is expected to set in the second half of the year.

Property and land owners were asked to submit a property tax return by the end of January 2023. The new property tax is due from January 1, 2025. As part of this reform, almost 36 million properties across Germany will have to be reassessed using owner information. Property tax is an important source of income for local authorities.