State sends signal that property tax increase may be waived

The city of Jena may have to apply for needs-based grants from the Free State of Thuringia due to the Corona-related tax shortfalls. This requires an increase in property tax rates, in particular for property tax B from 495 to 527. A city council resolution on this is only possible by 30 June of the current year. The Lord Mayor has therefore submitted a draft resolution to the City Council as a precautionary measure.

However, Lord Mayor Dr. Thomas Nitzsche and Head of Finance Benjamin Koppe have left no doubt that they would like to spare citizens this burden if there is an opportunity to do so. The head of the finance department had intervened with the Minister of the Interior and the Lord Mayor with his State Secretary in this regard.

This now appears to be the case. A letter at working level from the Thuringian Ministry of the Interior and Local Government to the Jena treasury indicates the possibility of waiving a property tax increase for 2020 if the need for an application for needs-based allocations is not established until after June 30. This is precisely the case, as the unscheduled tax estimate for September 2020 will be decisive. Benjamin Koppe was relieved:

"If we had been forced to burden citizens with a tax increase because of an administrative regulation that has lost its meaning in times of the corona crisis, that would have hurt me extraordinarily."

The city administration will discuss this letter on Monday with the municipal supervisory authority (state administration office), which will ultimately decide on the allocation of funds. Lord Mayor Dr. Thomas Nitzsche announced that he would then withdraw the proposal:

"I am very pleased that this is now probably no longer absolutely necessary following our intervention with the state. If this is confirmed, I will withdraw the city council bill and leave the assessment rate as it is."