1 Municipal Finance System in the Federal Republic

Transcript:1 Municipal Finance System in the Federal Republic:
1 Municipal Finance System in the Federal Republic of Germany: the Example of Thuringia Prof. Dr. Stefan Zahradnik Municipal Finance System in the Federal Republic of Germany 2 Outline of the Presentation Structure of the Federal Republic of Germany Tax revenue in the Federal Republic of Germany Tax revenue of selected municipalities in Thuringia Municipal taxes Municipal share of income taxes Key allocations to municipalities in Thuringia Fiscal equalisation levy in Thuringia Special burden compensation in Thuringia County levy in Thuringia It is not identical in all Länder, but it is similar. I'll explain using Thuringia as an example. Municipal Finance System in the Federal Republic of Germany 3 Structure of the Federal Republic of Germany 16 Länder thereof: 13 Flächenländer 3 City States (Berlin, Bremen, Hamburg) Erfurt Gera Jena Suhl Weimar 12 Counties in Thuringia 294 Counties in the Federation 619 Municipalities within counties in Thuringia 10.664 Municipalities within counties in the Federation 5 County-free cities in Thuringia 109 County-free cities in the Federation (01/2023) Taxes of the Länder: Property tax Inheritance tax Real property transfer tax Beer tax Race betting and lottery tax Fire protection tax Shares in joint taxes: Income tax (42,5%) Corporation tax (50%) Value-added tax (currently approx. 47.7%) Share in local business tax levy Municipal Finance System in the Federal Republic of Germany 4 Tax Revenue in the Federal Republic of Germany the Federation the Länder the Municipalities* Federal taxes: Motor vehicle tax and air transport tax Insurance tax Solidarity surcharge Various excise taxes (currently energy tax, tobacco tax, electricity tax, alcohol tax, coffee tax, sparkling wine tax, intermediate products tax, alcopop tax) Shares in joint taxes: Income tax (42,5%) Corporation tax (50%) Value-added tax (currently approx. 48,9%) Share in local business tax levy Tariffs Municipal taxes: Real property tax Local business tax Local excise and expense taxes (e.g. beverage tax, dog tax, hunting and fishing tax, liquor license tax, amusement tax [e.g. gaming machine tax], second home tax) Shares in joint taxes: Income tax (15%) Value-added tax (currently approx. 3.4%) Tax allocations according to the law of the Land (Municipal fiscal equalisation) According to Article 106 of the Basic Law, the following are entitled to * resp. associations of municipalities (counties) Länder fiscal equalisation 109.5 25.9 269.4 266.5 71.6 43.1 2.1 6.2 49.3 XX,X Taxes 2019 in billion € (BMF, 09/2021) 5.1 8.3 Municipal Finance System in the Federal Republic of Germany 5 Tax