Bad Arolsen sounds the alarm: property tax increases by 56% - financial crisis looms!

Bad Arolsen sounds the alarm: property tax increases by 56% - financial crisis looms!

The city of Bad Arolsen is facing a significant tax increase that is due to come into force on January 1, 2025. The magistrate has put forward a proposal to increase property tax rates, which will bring an unpleasant awakening for many households. How wlz online reported, the assessment rates for property tax A are to increase from 360 to 550 percentage points. An increase in property tax B from 340 to 530 percentage points is planned. For a single-family home with a measured amount of 100 euros, this means an annual tax increase of 340 euros to 530 euros - an increase of 56 percent.

With the proposed measure, the city hopes to bring an additional 1.8 million euros into its coffers. The increased trade tax rate from 390 to 410 percent should bring in 290,000 euros more income. Despite these measures, the city continues to face financial challenges. Mayor Marko Lambion expressed concern about the tense situation in the coming financial year and cited several causes for the problems.

Challenges for municipal finances

As the annual local finance analysis by the Hesse Taxpayers Association shows, the Waldeck-Frankenberg district is currently turning the tax screw in order to stabilize the financial situation. For 2024, nine municipalities have already increased the assessment rates for property tax B, often in combination with increases in property tax A and trade tax. In the previous year, however, only one community was affected. Taxpayer Hesse reports that only 17 of 21 municipalities were able to present a balanced budget, which represents a relatively high proportion for the district.

A dramatic trend is taking a back seat: in 2023, the municipal system closed with a deficit of 6.2 billion euros and a further deterioration of 8 billion euros. Loud City Day A deficit of 13.2 billion euros is forecast for the current year, which is almost doubling. One reason for this trend is the rising social security contributions and the costs incurred by the boom.

A look into the future

The financial challenges facing municipalities in the district are diverse. In addition to an increase in the district levy of 1.2 million euros and declining payments from the municipal financial equalization of around 800,000 euros, Bad Arolsen also has to take into account the high consequences of waiving resident contributions, which amount to 800,000 euros - instead of the originally planned 300,000 euros. All of these factors put pressure on the municipal budget and mean that tough austerity measures have to be taken.

The citizens of Bad Arolsen are facing a challenging financial time, as the announced tax increases and the difficult financial situation throughout the district will not remain without impact on the families' personal budgets. Mayor Lambion emphasizes that both tax increases and wise spending management are necessary to secure the future of Bad Arolsen.