Standard land value, area factor model, assessment rate – without complicated terms: property tax declarations are finally a bit simpler

There is still time for the property tax until the end of October. But you shouldn’t do it at the last minute, because it won’t work in 5 minutes. One reason for this is the large number of technical terms that tax and real estate professionals are familiar with, but which only make laypeople shake their heads.

What is definitely helpful: If you get a helper like WISO Grundsteuer, you will also be served explanations and examples for all terms. Just click on the question mark next to an unfamiliar term. In Elster you will also find fill-in help and a question mark icon for most fields. Explanations are also available here with a mouse click. We also recommend this free e-book on property tax.

A small property tax glossary also gives a quick overview of the

15 most important terms
to the new property tax. These explanations are kept so compact that you can read them through in one go. Practical for finding out in advance and then getting through the property tax more quickly.

Standard land value and assessed value

• Of the

  ground value
  is an important piece of information for property tax in most federal states. This is an average value based on one square meter of undeveloped land. The BRW is derived from the sale of land and specified specifically for the respective location. In Germany there is even a central contact point for information on BWRs. Unfortunately, you have to use information from individual state portals for the property tax (see table below), since the BWR is redefined every two years. The BWR is relevant for property tax on January 1, 2022.

• Under

  assessed value
  is a value determined by the tax authorities, which has also been used as the assessment basis for property tax for many years. According to the Federal Constitutional Court, however, the outdated unit value is unconstitutional. This circumstance is the reason for the revaluation of the properties via the new property tax. With the new property tax, the assessed value is replaced by the property tax value.

Elster, area factor model, parcel

• MAGPIE
  stands for the “Electronic Tax Declaration” and is a portal of the financial administration to complete the tax return digitally. You can register for this free of charge. ELSTER should preferably be used for property tax, but there are exceptions.

• That

  Area Factor Model
  is an approach taken with the new property tax. Although the revaluation of the properties is taking place all over Germany, the specific implementation is a matter for the federal states. There is a federal model, but not all federal states have adopted it. Seven do their own thing. Hessen, for example, uses the area factor model. The areas for building and property are determined and offset with a factor for location quality. Land in a better location is therefore taxed more heavily.

• That

  parcel
  is simply a single property that has a numerator/denominator number for identification, e.g. 123/456. You can find this data, for example, in a land register extract or via a geoviewer for your federal state.

District, land tax types, tax rate

• Also at the

  district
  you stumble across a term that is not very common in everyday language. What is meant by this is a summary of parcels of land, usually the entire area of ​​the municipality in which your property is located. You can find information on this in a land register extract or via a geoviewer.

• Property tax A, B and C are different

  property tax types
  . A includes agricultural and forestry assets and businesses, B is the rest, that is

  all developed and developable plots. C is a new niche because municipalities can now also set their own assessment rates for plots of land ready for construction.

• The property tax flows into the city and municipal coffers. Of the

  tax rate
  is a factor that goes into the calculation of property tax and is set by cities and municipalities. The assessment rates for 2024 will be set for the new property tax. Then you can calculate exactly how high the property tax will be.

Property tax value, property tax index, property tax measurement amount

The property tax is calculated using the property tax value x the property tax reference number x the rate of assessment. The towns and municipalities have yet to determine the assessment rate (see above).

• Of the

  property tax value
  replaces the unconstitutional unit value. Determining these values ​​is the purpose of the property tax return.

• the

  property tax index
  is determined by the tax authority. From 2025, when the new property tax will have to be paid, the meter will be 0.31 per mil for residential land and 0.34 per mil for example commercial and vacant land.

• Of the

  Property Tax Measurement Amount
  is the combination of property tax value and property tax index. With the property tax return, the tax office gets the necessary information from you to determine the amount to be measured.