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Four NRW Cities Appeal Ruling Blocking Higher Commercial Property-Tax Rates

The case tests a 2024 state law that let municipalities set separate rates for residential and non-residential properties.

Overview

  • Dortmund, Essen, Bochum and Gelsenkirchen filed appeals at the Higher Administrative Court in Münster to preserve differentiated property-tax rates.
  • A December decision by the Administrative Court in Gelsenkirchen barred municipalities from charging businesses higher rates than homeowners.
  • NRW’s parliament authorized split rates in mid‑2024, which many cities adopted after the property‑tax reform to stabilize revenues.
  • The Deutscher Mieterbund NRW supports the appeal, saying a successful review could spare renters higher costs because landlords can pass the tax through.
  • If the lower-court ruling stands, cities may raise residential rates to maintain revenue, and the tenants’ association urges removing property tax from pass-through operating costs.