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Munich Moves to Challenge Bavaria’s Hotel Tax Ban at Federal Constitutional Court

City hall seeks a ruling on whether Bavaria’s prohibition infringes Article 28’s guarantee of municipal fiscal autonomy.

Overview

  • München’s mayor Dieter Reiter and finance chief Christoph Frey will propose filing a municipal constitutional complaint to the city council.
  • Local leaders acted after losing in November at Bavaria’s Constitutional Court, which upheld the state’s prohibition on such levies.
  • The state blocked a five percent surcharge on lodging that Munich passed in March 2023 by amending the Municipal Charges Act.
  • The city argues the ban violates the Basic Law’s protection of local self-government and notes a separate state ban on a packaging tax further narrows fiscal options.
  • The treasurer estimates up to €100 million in annual revenue is at stake, while pointing out that cities like Berlin, Hamburg, Cologne, Frankfurt, Dresden, Dortmund, Bremen and Freiburg levy similar charges.