Longer deadline for property tax returns - but the problems remain

Many property owners are breathing a sigh of relief. They now have until January 31, 2023 to submit their property tax return. However, the deadline extension does not resolve the difficulties that many have with the forms and the system for recording them.

The property tax return should actually have been submitted by October 31 of this year. By the beginning of October, however, not even a third of owners had done so. This was not because the remaining owners are so lazy, but because the recording system and the forms in the Elster program are "not well thought out in the slightest", said Tax consultant Oliver Hagen in an interview with Spiegel. However, the deadline extension now at least gives the owners time to receive information from other offices that they are waiting for in good time.

Lodge an objection

Some points in the property tax declaration are imprecisely regulated, notes Hagen. For example, what is considered a core renovation? Living and usable space are also not precisely defined. Hagen therefore advises lodging an objection immediately after receiving the property tax assessment notice, which is due to reach the owners in 2024. They have one month to do so.

This is because Hagen assumes that the property tax value will be calculated too high in many cases. An objection stops the deadline from expiring and gives owners the time and opportunity to examine the property tax assessment notice in detail. The objection can also be withdrawn again without damage. It is best to seek advice from an expert.

Violation of the principle of equality?

The old property tax was overturned because, according to the Federal Constitutional Court, it violated the principle of equality. Hagen believes that this is also the case with the calculation of the new property tax and expects it to keep the courts busy for a long time to come.

Ask a tax expert

If you are unsure about filling in the Elster forms, you should contact a tax advisor. Depending on the region, it can be difficult to find one in Germany. In Berlin, for example, many tax advisors are so overloaded that they are not accepting new clients. The search for a tax consultant can therefore take a little longer.

Property tax return only possible electronically

As the tax offices are concerned with digitizing the data on the property, the property tax return must always be submitted electronically. Only in certain exceptional cases is it possible to submit the return on paper. For electronic data transmission, a user account with ELSTER (Electronic StYours heclarification) is necessary. If you do not yet have an account, you should register as soon as possible, as you will receive your password by post - and this can take a few weeks.

Are you unsure about what is important for calculating property tax? Please contact us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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