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Taxes. Bavaria decides to take legal action against inheritance tax

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Bavaria decides to sue over inheritance tax

Bavarian Prime Minister Markus Söder (M, CSU) opens the cabinet meeting at the Ministry of the Interior. photo:

© Daniel Karman/dpa/archive image

As repeatedly threatened, Bavaria has sued over the structure of the inheritance tax. The Cabinet of Ministers decided on Tuesday in Nuremberg. An application for an abstract review of the relevant provisions of the Inheritance Tax Act will be submitted to the Federal Constitutional Court, it said. This should “pave the way for the urgent need for increased tax relief and regionalization of inheritance tax”. Prime Minister Markus Söder (CSU) emphasized. “We consider it a great injustice that Bavarian property is ultimately valued in the same way as property in other parts of Germany, where prices are not comparable.”

As repeatedly threatened, Bavaria has sued over the structure of the inheritance tax. The Cabinet of Ministers decided on Tuesday in Nuremberg. An application for an abstract review of the relevant provisions of the Inheritance Tax Act will be submitted to the Federal Constitutional Court, it said. This should “pave the way for the urgent need for tax relief and the territorialization of inheritance tax”. Prime Minister Markus Söder (CSU) emphasized. “We consider it a great injustice that Bavarian property is ultimately valued in the same way as property in other parts of Germany, where prices are not comparable.”

The state government complained that the increase and territorialization of benefits through political or legislative means failed to the end because of the federal government and other federal states. On Friday, Bavaria failed in the Bundesrat to summon a mediation committee of the Bundestag and Bundesrat over this point of contention. Rather, the regional chamber approved the annual tax law with extensive tax changes.

Background is a real estate valuation adjustment. As a result, heirs of larger assets may face higher costs from January 1, 2023. That is why Bavarian Finance Minister Albert Füraker (CSU) warned against “rear tax increases”.

dpa:

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