New assessment rates for property tax adopted

On November 4, the city council approved the new assessment rates for property tax from January 1, 2025. The assessment rate for property tax B (developed and undeveloped land) will be set at 590 percent. For property tax A (agricultural and forestry land), an assessment rate of 425% will apply in future.

Nationwide property tax reform

The changes are necessary as the nationwide property tax reform will take effect from 2025 and will require the enactment of new property tax assessment rates. Corresponding adjustments have also been made in neighboring cities. Fürth, for example, is changing the assessment rate for property tax B to 660 (previously 555) and Nuremberg to 780 (previously 555).

Measurement amount decreases in many cases

With the reform, the calculation model in Bavaria is being changed from a value-based to an area-based basis. This leads to changes in the measurement amounts and therefore the tax payable. According to the new, purely area-based calculation model, either a lower or higher tax may be payable. However, according to the calculations of the municipal administration, the taxable amount in Erlangen will fall in almost 80 percent of cases.

The increase in Erlangen is made up as follows:

• 100 percentage points of the increase are accounted for by a revenue-neutral assessment rate, which safeguards the tax revenue in 2024, as the reform will reduce the total measured amount.
• A further 65 percentage points take into account the city's strained budget situation, but also uncertainties arising from the reform (including new waiver options, incomplete data bases, appeal proceedings at the tax office).

As a result of the property tax reform, some properties will fall from property tax A to property tax B. If the assessment rate for property tax A were calculated on a revenue-neutral basis, it would have to be significantly higher than the current level of 300 percent. In order to avoid an excessive burden for the remaining properties, the assessment rate for property tax A was set at 425%.

The city of Erlangen will send out the new property tax assessment notices in mid-January 2025.

The announcement of the statute on the determination of the assessment rate for property tax (property tax assessment rate statute) will be published in the official gazette "Die amtlichen Seiten" - No. 23, November 14, 2024.