Overview
- The administrative court annulled four tax assessments and voided parts of the ordinances in Essen, Bochum, Dortmund and Gelsenkirchen that set higher rates for non‑residential property.
- The judges said easing housing costs may justify privileging residential property, but using higher commercial rates solely to offset that relief is a purely fiscal aim and unlawfully discriminatory.
- The decisions are not final, with both a standard appeal and a rare direct ‘Sprungrevision’ to the Federal Administrative Court in Leipzig permitted by the panel.
- Cities cannot rely on the invalidated split-rate provisions in other pending cases, prompting warnings of revenue shortfalls and calls from the Städtetag NRW for the state to cover potential losses.
- NRW’s finance ministry maintains differentiated rates remain possible under law, while widespread challenges continue and the Bundesfinanzhof is set to rule on the federal model on December 10.