Council Tax

Municipal finance is the generic term for all revenue of the cities and municipalities. For some types of income (eg, property and business tax) can influence the amount of the municipalities themselves. Other sources of income (eg share of the sales tax), however, can not be influenced by the local authorities. The Municipal Fiscal policy is a cross-sectional area of local politics.

Types of revenue

The municipal regulations of the federal states provide a ranking of raising finance on:

Loans may thereby be included only if another funding would not be possible or uneconomical.

Taxation

The cam means which shall accrue to cities and towns, including the business tax, the share of income tax, property tax, the share of the sales tax and various municipal taxes (eg tax on dogs ).

Business tax

Trade tax is since 2004 the fiscally significant source of tax revenue of the municipalities. In 2005, its net revenue was 20.4 billion euros. This corresponds to a share of about 43 percent of total municipal tax revenue.

Income tax share

The community share of the income tax in 2005 amounted to 18.5 billion euros. This corresponds to a share of about 34 percent of total municipal tax revenue. This income tax portion is after the trade tax, the fiscal zweitbedeutsamste source of tax revenue of the municipalities.

Land tax

After the business tax and the income tax component, the property tax is the drittergiebigste source of tax revenue of the municipalities. Its rise in 2005 was approximately 9.1 billion euros, which is roughly 17 percent of local tax revenue.

Share of turnover tax

Since 1998, the communities are involved with a share of 2.2 per cent of the revenue of the tax that remains after deducting a share of 5.63 percent advance for the federal government. Through the community share of the sales tax the elimination of the tax on business capital should be compensated. The advent of the local sales tax share in 2005 was 2.6 billion euros. This corresponds to a share of about 4.8 per cent of all municipal tax revenues. The community share of the tax deemed to be a steady and calculable source of income for local communities.

Municipal tax determination right

The local tax laws of the countries ( exemplified § 9 CISA Baden-Württemberg ) give the municipalities the right to itself to raise taxes. This must be either excise or luxury taxes. Municipalities can regulate more consumption or expenditure tax ordinances, insofar as there is not already similar taxes under federal or state law. The most famous local taxes are the second home tax, the dog tax, the entertainment tax, the bed tax and local tax.

Federal and state grants

For the execution of federal and state laws by municipalities such benefit received by the federal government and the federal state. Some of the grants cover the costs of municipalities do not fully off, especially since staff must be provided for the management and processing in addition to the actual operating expenditure. The communities consist increasingly on the observance of the so-called connexity principle that simplifies the principle Who ordered the music, she also has to pay involves.

An example is the cost of basic security in old age and disability according to the Social Code XII. Here, a bill was after long discussions 4 August 2012, the Federal Government decided, after the complete takeover of the net cost for the basic security is provided in two additional steps: In 2013, the federal share increased to 75 percent. As of 2014, the federal government then takes over 100 percent of the cost. Previously, the federal share for the year 2012 had been increased from 16 to 45 % of expenditure.

Representations

Development of the revenue of the administrative budget of the East German municipalities

Structure of the revenue administration of the budget of the East German municipalities