Germany updates property tax rules for municipalities and inherited renewable‑energy lands

The Bochum city council voted on 19 March to maintain separate municipal tax rates for residential and commercial properties pending court clarification, aiming to preserve the city’s estimated €92 million property‑tax revenue. The decision follows competing rulings by the Gelsenkirchen and Düsseldorf administrative courts and awaits a final judgment from the Münster higher administrative court.

Separately, German tax authorities issued new directives on 6 March requiring that the land value (Bodenrichtwert) be applied when assessing the inheritance and gift tax of parcels hosting wind turbines or large‑scale photovoltaic installations. While the turbines themselves are classified as operating equipment and not part of the land, the directives markedly increase the taxable value of such parcels, impacting heirs and donors across the country.

Both measures reflect ongoing adjustments to German property‑tax legislation after the Federal Constitutional Court’s 2023 ruling on the Grundsteuer system.