CDU advocates for a revamp of the fundamental tax structure in Solingen
In the city of Solingen, homeowners like Bernd and Marion Schmidt, who purchased a semi-detached house with a large garden in 1990, are facing a significant increase in their property tax burden. The Schmidts, now in their sixties, have seen their annual property tax rise from 248 euros to over 1,080 euros due to the revaluation of their property.
The CDU, a political party in Solingen, has criticized the new property tax regulation, arguing that it places an increased financial burden on private homeowners, starting from 2028. The city plans to uniformly increase the tax rate to 801 percentage points to secure its income of around 40 million euros.
The CDU's mayoral candidate, Daniel Flemm, has stated that owner-occupied homes could become a financial burden instead of a means of old-age provision if the current property tax reform goes through. To address this concern, the CDU proposes introducing differentiated tax rates for residential and commercial properties. They suggest a proposed tax rate of 711 percent for residential properties and 1,048 percent for commercial properties.
The new property tax reform, starting in 2025, will use current land value data and market data nationwide to calculate property tax. This change is expected to lead to significant additional burdens, especially for older residential properties with larger plots. The CDU believes that even if the proposed tax rates are implemented, these properties could still face significant additional burdens under the new property tax reform.
The CDU also sees potential in hinterland properties like the Schmidt family's and suggests systematically developing them to create new living space. They argue that this could help alleviate the financial burden on homeowners by increasing the supply of affordable housing.
Commercial properties, on the other hand, are reported to often be relieved under the new property tax regulation. Bochum is being planned to introduce separate tax rates for residential and commercial properties. This move could help balance public revenue needs and fairness, ensuring that the tax burden is distributed more equitably.
Tenants could potentially be indirectly affected through ancillary costs due to the current property tax reform. The CDU's proposed solutions aim to mitigate these impacts and protect homeowners and tenants from excessive financial burdens.
However, without specific data on the CDU Solingen proposal, it is not possible to state the exact effects, solutions, or comparisons with commercial properties in this case. For detailed and accurate information, local government or CDU Solingen official communications would be the authoritative sources. The CDU opposes the planned across-the-board tax increase of 25 percent from 2028 and advocates for a moderate adjustment of 1-2 percent annually. They also suggest that a directive from the mayor could be sufficient to systematically capture potential tax reductions.
- The CDU, in response to the property tax increase, has proposed differentiated tax rates for residential and commercial properties in Solingen, with a suggested residential tax rate of 711 percent and a commercial tax rate of 1,048 percent.
- The CDU, in an effort to alleviate the financial burden on homeowners, also suggests systematically developing hinterland properties to create new living spaces, which could increase the supply of affordable housing and reduce property tax burdens.
