Property tax increases reported in Hesse, Germany

Municipalities in the Bergstraße district of Hesse are implementing significant increases in property tax B due to strained budgets. According to an analysis by the Taxpayers' Association (BdSt) Hesse, eight of the 22 district municipalities have raised their assessment rates, with some seeing massive spikes. Notably, Lautertal increased its rate by 300 percentage points, followed by Birkenau and Lindenfels.

The financial pressure is attributed to rising costs for social services and childcare, alongside insufficient increases in municipal financial equalization funds. Many municipalities are facing deficits and have exhausted their reserves. In response to these fiscal challenges, several cities and municipalities have also increased trade tax rates.