Bremer City-Tax increases to 5.5%: financing or business risk?

Bremer City-Tax increases to 5.5%: financing or business risk?

Bremen, Deutschland - The city tax in the state of Bremen is increased, which causes numerous discussions. The Bremen Senate has decided by half a percentage point, so that the tax is now 5.5 percent of the overnight costs. Financial Senator Björn Fecker from the Greens justifies this measure with an acute budget emergency and the urgent need to increase the country's income. Some of the newly obtained funds should flow into advertising for Bremen as an attractive travel destination. However, the change in the law must still be approved by the Bremen citizens.

The reaction to this increase is split. The Hotel and Restaurant Association Dehoga expresses sharp criticism and describes the city tax as damaging to business. Their managing director, Nathalie Rübsteck, warns of the possible negative effects on the tourism sector. The CDU also criticizes the increase and describes it as the wrong signal in an already tense market environment. FDP parliamentary group leader Thore Schäck sees the measure only an attempt to close the household holes.

Current regulations on the city tax

The city tax has been collected in Bremen and Bremerhaven since 2013 and is subject to certain regulations. All paid private nights in accommodation companies are taxable until March 31, 2024. However, new regulations come into force on April 1st, 2024. A significant change is the expansion of tourism levy to business travelers, which means that professional overnight stays are then taxed. The tax rate for these overnight stays is 5 percent of the overnight fee.

However, the previous tax exemptions remain partially, for example in the event of overnight stays by minors or for up to seven coherent overnight stays. In addition, a new tax exemption for companies is introduced, which serve exclusively non -profit, charitable or church purposes, provided that the appropriate evidence is presented.

Taxation details

The assessment basis for the tourism tax is the overnight fee without sales tax and without further services. Downs for bookings are also part of the overnight fee. If the accommodation company does not know the exact price of the guest, the price for a comparable room will be used.

The planned changes and the increase in the city tax could thus have profound effects on the tourism industry in Bremen, while politicians continue to debate the need and effects of these measures.

Further information on the City-Tax and the current regulations are onButtonandService.bremento find.