The Hes\u00adsi\u00adan Finan\u00adce Court has expres\u00adsed serious doubts as to whe\u00adther the Hes\u00adsi\u00adan pro\u00adper\u00adty tax model is com\u00adpa\u00adti\u00adble with the Basic Law in respect of cer\u00adtain plots of land situa\u00adted in are\u00adas desi\u00adgna\u00adted as \u2018out\u00adly\u00ading\u2019 under plan\u00adning law. The case aro\u00adse from a dis\u00adpu\u00adte over the pro\u00adper\u00adty tax paya\u00adble on a lea\u00adsed plot of land on which a golf cour\u00adse is operated.<\/p>\n
Fol\u00adlo\u00adwing the pro\u00adper\u00adty tax reform, the fede\u00adral sta\u00adtes have the opti\u00adon of intro\u00addu\u00adcing their own valua\u00adti\u00adon models. Hes\u00adse has opted for the so-cal\u00adled \u2018area-fac\u00adtor\u2019 model. This model links the tax direct\u00adly to the plot area and the stan\u00addard land value, but, in the view of the tax aut\u00adho\u00adri\u00adties, is in prin\u00adci\u00adple inde\u00adpen\u00addent of value. It is the\u00adr\u00ade\u00adfo\u00adre not pos\u00adsi\u00adble to pro\u00advi\u00adde evi\u00addence that the actu\u00adal value of the pro\u00adper\u00adty is lower.<\/p>\n
For plots of land in out\u00adly\u00ading are\u00adas \u2013 that is, are\u00adas situa\u00adted out\u00adside built-up are\u00adas and sub\u00adject to rest\u00adric\u00adtions under plan\u00adning law \u2013 the Hes\u00adsi\u00adan Pro\u00adper\u00adty Tax Act pro\u00advi\u00addes for a spe\u00adcial rule: ins\u00adtead of the full stan\u00addard land value, only 10 per cent of the avera\u00adge stan\u00addard land value is appli\u00aded. The ratio\u00adna\u00adle behind this is that such are\u00adas bene\u00adfit less from local infra\u00adstruc\u00adtu\u00adre such as roads, sewerage sys\u00adtems or car parks than plots in built-up areas.<\/p>\n
The Hes\u00adsi\u00adan Finan\u00adce Court con\u00adsiders it high\u00adly doubtful whe\u00adther the rele\u00advant pro\u00advi\u00adsi\u00adons in Sec\u00adtion 7(2) of the Hes\u00adsi\u00adan Pro\u00adper\u00adty Tax Act are com\u00adpa\u00adti\u00adble with the gene\u00adral prin\u00adci\u00adple of equa\u00adli\u00adty under Artic\u00adle 3(1) of the Basic Law and the gua\u00adran\u00adtee of pro\u00adper\u00adty rights under Artic\u00adle 14(1) of the Basic Law. The court gran\u00adted the pro\u00adper\u00adty owner, as an inte\u00adrim mea\u00adsu\u00adre, a par\u00adti\u00adal sus\u00adpen\u00adsi\u00adon of the enforce\u00adment of the pro\u00adper\u00adty tax assess\u00adment as at 1 Janu\u00adary 2022. This means that the owner is not requi\u00adred to pay the dis\u00adpu\u00adted por\u00adti\u00adon of the pro\u00adper\u00adty tax for the time being, until the mat\u00adter has been resol\u00adved in principle.<\/p>\n
Accor\u00adding to the court, the pro\u00adblem lies in the fact that, in the case of very lar\u00adge out\u00addoor are\u00adas \u2013 such as golf cour\u00adses, lei\u00adsu\u00adre faci\u00adli\u00adties or agri\u00adcul\u00adtu\u00adral hol\u00addings with exten\u00adsi\u00adve land \u2013 a line\u00adar cal\u00adcu\u00adla\u00adti\u00adon based on the size of the plot can result in a dis\u00adpro\u00adpor\u00adtio\u00adna\u00adte\u00adly high tax bur\u00adden. At the same time, the owners of the\u00adse are\u00adas can hard\u00adly increase the inten\u00adsi\u00adty of their use, as plan\u00adning law impo\u00adses strict limits in rural are\u00adas. More inten\u00adsi\u00adve deve\u00adlo\u00adp\u00adment, which might jus\u00adti\u00adfy a hig\u00adher tax bur\u00adden, is sim\u00adply not legal\u00adly pos\u00adsi\u00adble there.<\/p>\n
The Finan\u00adce Court takes a par\u00adti\u00adcu\u00adlar\u00adly cri\u00adti\u00adcal view of the fact that the Hes\u00adsi\u00adan model pro\u00advi\u00addes for neither a gra\u00addua\u00adted sca\u00adle for par\u00adti\u00adcu\u00adlar\u00adly lar\u00adge plots nor a hard\u00adship pro\u00advi\u00adsi\u00adon for aty\u00adpi\u00adcal plots of land. Wit\u00adhout such a pro\u00advi\u00adsi\u00adon, the\u00adre is a risk of exces\u00adsi\u00adve taxa\u00adti\u00adon in cer\u00adtain cir\u00adcum\u00ads\u00adtances, which can\u00adnot be jus\u00adti\u00adfied under con\u00adsti\u00adtu\u00adtio\u00adnal law.<\/p>\n
Howe\u00adver, the court also poin\u00adted out that this con\u00adcerns a rela\u00adtively small num\u00adber of cases, which are unli\u00adkely to have a signi\u00adfi\u00adcant impact on local aut\u00adho\u00adri\u00adties\u2019 tax revenue.<\/p>\n
Anyo\u00adne in Hes\u00adse who owns a lar\u00adge plot of land in a rural area \u2013 for exam\u00adp\u00adle, a camp\u00adsi\u00adte, a golf cour\u00adse or a simi\u00adlar faci\u00adli\u00adty \u2013 should have their pro\u00adper\u00adty tax assess\u00adment noti\u00adces scru\u00adti\u00adni\u00adsed. The Finan\u00adce Court has express\u00adly allo\u00adwed the appeal to be refer\u00adred to the Fede\u00adral Finan\u00adce Court on the grounds of its fun\u00adda\u00admen\u00adtal signi\u00adfi\u00adcan\u00adce, mea\u00adning that a ruling by the hig\u00adhest court is to be expected.<\/p>\n
Affec\u00adted pro\u00adper\u00adty owners should seek legal or tax advice to assess, on a case-by-case basis, whe\u00adther it would be advi\u00adsa\u00adble to lodge an objec\u00adtion or app\u00adly for a stay of enforcement.<\/p>\n
Hes\u00adse Finan\u00adce Court, Order of 21 May 2026, Case No. 3 V 1420\/24<\/strong><\/p>\n