Speyer in the crisis: property tax decision without feedback!

Speyer in the crisis: property tax decision without feedback!

On January 9, 2025, the city of Speyer is in a financially tense situation. As Rheinpfalz.de so far has not received any feedback from the supervisory authority of the city council, who waived the recommendation of the administration last December. This decision was made so as not to put a strain on the citizens. However, there are concerns that the country could not simply accept this decision.

The property tax reform proves to be less up -to -date than hoped for. The city of Speyer could do without about 2 out of 8 million euros, which further tightens the budget deficit. Mayor Stefanie Seiler (SPD), who was in maternity leave during the council decision, expresses an understanding of the absence of the increase and emphasizes that this project could have negative effects on projects for affordable living space.

financial challenges of the municipalities

The current financial situation of the city is developing negatively. For the first time, Speyer has to accept a shortfall in the budget for the first time. Seiler emphasizes that the administration has undertaken everything necessary when it comes to property tax. At the same time, there is criticism in the federal legislation that is held responsible for this because it should ensure that residential units are not worse than business.

These challenges are not limited to Speyer. As dStGB.de , the presidents of the local top associations show a permanent population of local finances. They demand a larger proportion of community taxes and criticize the expansion of local tasks by the federal and state governments without adequate funding.

The financial forecasts are alarming. From 2025 a severe decline in municipal investments is expected. The municipalities will continue to be able to invest sufficiently in climate protection, energy or traffic transition. The investment deficit currently amounts to 186 billion euros and is expected to continue to rise. Increasing expenses, especially through unexpected inflation, higher number of cases in the social sector and new legal claims, drive the deficits.

The consolidation of households becomes a challenge. Emergency households and discussions about household consolidations are now a new reality in town halls and district offices. The municipalities have been pointing out their structural underfunding for a long time, which also puts the current situation in Speyer in a larger context.