Revenue-neutral assessment rates for property tax B published

The Saxon State Ministry of Finance (SMF) has recently published the revenue-neutral assessment rates for property tax B for all Saxon cities and municipalities(https://www.smf.sachsen.de/hebesatzprognose-2025.html)

The SMF explains this as follows:

"From January 2025, property tax will be levied on the basis of current values. This will result in changes for individual property owners. Some will have to pay more property tax, others less. This consequence is unavoidable.

In order to be able to assess the effects of the property tax reform, we have calculated for each municipality in Saxony what assessment rate would probably have to be set for the year 2025 for a revenue-neutral implementation of the property tax reform. A range is shown in view of the statistical requirements for the data basis - in particular the fact that not all new measurement amount data is currently available (see appendix below for details of the calculation methodology).

In recent months, property owners have received, among other things, a "Notice on the property tax measurement amount - main assessment as at 1 January 2025" from the tax office. The future property tax can be calculated as follows:

Property tax assessment amount 1 January 2025 x assessment rate 2025 / 100 = annual property tax 2025."

For Radebeul, the revenue-neutral assessment rate for property tax B is forecast to be in the range of 215 to 240%. Compared to the current assessment rate of 400%, this represents a significant reduction, which is largely due to Radebeul's high land values.

The Radebeul City Council already committed to the revenue neutrality of the property tax reform in 2018 (resolution SR 37/18-14/19 of 16 May 2018 - 16 votes in favour, 9 against, 4 abstentions). This resolution is binding for the administration.

The current range of the revenue-neutral assessment rate will be further qualified into a specific revenue-neutral assessment rate by the autumn of this year as the tax offices in Saxony continue to prepare their assessment notices. On this basis, the City Council is then expected to make its final decision on the collection rate in November.