| Local business tax | |
The
local business tax collection rate
is laid down by the municipalities in their budgets and specifies the
level of taxation levied on the trade earnings of a business enterprise.
On the basis of this operating profit, the local Inland Revenue Office
determines the base value for tax purposes (generally 5% of the operating
profit, which is calculated from the business profits subtracted by
certain amounts). The municipality applies the
local business tax collection rate
to this figure and issues its business tax assessment notice. In Lower
Saxony, these collection rates currently lie between 250% and 450% (as
of: 2003).
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| | Local property tax | |
The
local property tax B collection rate
is also a municipal tax defined by each municipality in its budget. It
specifies the taxation level for real estate (without agricultural and
forestry assets), which embraces land, buildings, the hertitable building
right, and residential property. With the aid of a basic rate for the
rateable value of the real estate, a base value for tax purposes is
calculated according to the Valuation Act (BewG). The municipality applies the
local property tax B collection rate
to this figure and issues its property tax assessment notice. These
collection rates currently lie between 240% and 456% (as of: 2003).
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