AdV decision of the BFH (II B 78/23) on the assessment of property tax value

June 16, 2024

The BFH ruled – initially only in the AdV decision (of 27.05.2024, II B 78/23) - that evidence of a lower market value is to be recognised for reasons of material fairness when determining the property tax value. In this case, instead of the values calculated in accordance with §§ 218 ff. BewG, the lower fair market value is to be recognised if the value determined by the tax office exceeds the proven lower fair market value by 40% or more.

The BFH did not comment on the constitutionality of the new statutory regulation, but did point out that the legislator is entitled to apply a lump sum in mass proceedings and – if a lower value is proven and subsequently recognised - this cannot lead to unconstitutional overtaxation.