Bad Arolsen raises the alarm: Property tax increases by 56% - financial crisis threatens!

Bad Arolsen raises the alarm: Property tax increases by 56% - financial crisis threatens!

Bad Arolsen, Deutschland - The city of Bad Arolsen is faced with a strong tax increase that is due to come into force on January 1, 2025. The magistrate has submitted a proposal to increase the property tax rates, which will bring an unpleasant awakening for many households. As wlz-online , the lifting tax for property tax a from 360 to 550 percentage points should climb. With property tax B, an increase from 340 to 530 percentage points is planned. For a single -family house with a measurement amount of 100 euros, this means an annual tax increase from 340 euros - an increase of 56 percent.

With the proposed measure, the city hopes to flush an additional 1.8 million euros into the health insurers. The increased trade tax rate from 390 to 410 percent is expected to bring 290,000 euros more. Despite these measures, the city is still faced with financial challenges. Mayor Marko Lambion was concerned about the tense situation in the coming financial year and names several causes of the problems.

challenges for local finances

As the annual local finance analysis of the Federation of Taxpayers Hesse shows, the Waldeck-Frankenberg district is currently turning on the tax screw to stabilize the financial situation. For 2024, nine municipalities have already raised the lifting rates for property tax B, often in combination with increases in property tax A and trade tax. In the previous year, however, only one municipality was affected. Taxpayers Hesse reports that only 17 out of 21 municipalities could present what is a relatively high proportion for the district.

A dramatic trend is moving into the background: In 2023, the municipal system with a deficit of 6.2 billion euros and a further deterioration closed by 8 billion euros. According to Staedtettag A deficit of 13.2 is even forecast for the current year Billions of euros, which is almost a doubling. One reason for this trend is the increasing social security levies and the costs that arise from the highly economy.

A look into the future

The financial challenges that the municipalities are in the district are diverse. In addition to an increase in the district levy for 1.2 million euros and declining payments from the municipal financial equalization around 800,000 euros, Bad Arols must also take the high consequences of waiver of residents' contributions that amount to 800,000 euros - instead of the originally planned 300,000 euros. All of these factors have an early pressure on the municipal household and mean that a hard savings stocking must be strapped.

The citizens in Bad Arolsen are faced with a demanding financial time, since the announced tax increases and the difficult financial situation in the entire district will not remain without influence on the personal budgets of families. Mayor Lambion emphasizes that both tax increases and clever output management are necessary to secure the future of Bad Arolsen.