The annual tax law was passed in the Bundesrat. For this reason, heirs are threatened with higher costs for real estate assets from January 1st. Only Bavaria and Hesse therefore want to increase the allowances for inheritance tax.
The Federal Council approved the annual tax law with extensive tax changes on Friday. Bavaria failed with an application to call the mediation committee of the Bundestag and Bundesrat. The trigger: Bavaria is demanding that the allowances for inheritance tax be adjusted.
With the exception of Markus Söder (CSU, Prime Minister of Bavaria) and Boris Rhein (CDU, Prime Minister of Hesse), all Prime Ministers are opposed to increasing the allowances for heirs. This is shown by the latest information from the “Bild” newspaper.
The allowances for inheritance tax have not been increased for 13 years. With the exception of Söder and Rhein, all country heads have decided against it. A spokesman for Thuringia’s Prime Minister Bodo Ramelow (left) told the “Bild” that “the current allowances are sufficient”. An increase would be counterproductive.
Manuela Schwesig (SPD), the Prime Minister of Schleswig-Holstein, also sees no “urgent need” to increase the allowances for heirs. The Prime Minister of Rhineland-Palatinate, Malu Dreyer (SPD), explains that the blocking of the higher allowances is even “an important contribution to more justice”. As a result, the “unequal distribution of wealth” can be corrected.
Only from Hesse and Bavaria is there approval for higher tax allowances. Bavaria’s Finance Minister Albert Füracker (CSU) said the changes were necessary because of a ruling by the Federal Constitutional Court. But it is a “tax increase through the back door”.
Füracker said Bayern will continue to put pressure on. He explains to the “Bild”: “Bavaria will sue before the Federal Constitutional Court. We continue to fight for the people, the necessary increase in tax allowances and a regionalization of inheritance tax.”
The background is an adjustment in the valuation of real estate. As a result, heirs to larger assets could face higher costs from January 1, 2023.
Also interesting: Heirs, don’t be silly! – Why it is fair for real estate heirs to pay more taxes