No matter how you look at it:

Property tax increases in Havelberg

6.6.2025

Council members in Havelberg will soon have to decide: Uniform or differentiated tax rates?

The new property tax is causing frustration — either way.

Property Tax Havelberg

The decision is difficult but urgently needed: What should the new Property Tax B rate be in Havelberg to keep the 2025 city budget on track? The Main and Finance Committee discussed possible scenarios in detail on June 2.

Background: A nationwide property tax reform came into effect in early 2025. Since not all property assessments and tax base values were available at the turn of the year, the new tax could not be calculated right away. As a precaution, the city council followed the administration’s recommendation and decided to temporarily retain the previous tax rate of 450%.

But now time is running out: The city council must pass a new rate by June 30 at the latest to maintain the previous year’s revenue level.

Two options to choose from

Uniform rate for all properties
Separate rates for residential and non-residential properties

The goal is so-called revenue neutrality — meaning that income remains about the same as before the reform. The 2025 budget includes a target of around €752,400. If the old rate of 450% were kept, around €170,400 would be missing from the city’s finances.

Strictly speaking, this isn’t perfectly neutral when compared to the 2018 benchmark. But — what hasn’t become more expensive in the past seven years?

City treasurer Philipp Morgenroth presented both proposals. From an administrative perspective, the uniform rate is preferred because it offers more legal certainty. Still, both versions have pros and cons:

For the differentiated option:

515% for residential → approx. €511,900
807% for non-residential → approx. €241,500
Total revenue: around €753,400

For the uniform option:

Flat rate: 582%
Residential → €578,500
Non-residential → €174,170
Total revenue: around €752,670

Committee debate

The questions and comments from council members showed how emotional and complex the topic is. Mayor Mathias Bölt (independent) admitted he was still undecided. From talks with other mayors, he knows that municipalities are taking very different approaches.

One major concern: The new property assessments from the tax office vary widely — even between similar plots within the same town. That makes the new bills hard to understand for many citizens.

Sven Hetke (Bürgerliche Mitte) warned against placing too much burden on people who financed their own homes. Martin Schröder (Left/City-Country) spoke out against blanket legal doubts about the differentiated model. Sebastian Heldt (AfD) called for more clarity about how many residential and non-residential properties exist in the municipality.

Decision coming soon

The final vote is scheduled for June 18 at the city council meeting. Until then, several questions still need answering — for example: How exactly will non-residential properties be defined?

What about Property Tax A and business tax?

No changes are currently planned for Property Tax A (for agricultural land) or the business tax — both remain at 390%. Havelberg’s rates are in line with the state average.

Lowering them to attract new business is unlikely, as municipalities receive fiscal equalization payments and are not allowed to undercut the state average to gain a competitive edge.

Property tax notice: Surprise or shock?

If you’ve received your new tax notice and the difference is so extreme that it’s worth reporting, you can send both the old and new bill to us via our contact form. Together with Havelberg-Immobilien, we’ll take a look and report on the most glaring discrepancies.

Because politically, the goal was: It wasn’t supposed to get more expensive…

Also interesting …

PS: For context: The tax office sets the assessed value of a property. The city determines the multiplier based on the property type. Together, they determine how much property tax you pay.