Bremen city tax rises to 5.5%: financing or threat to business?

Bremen city tax rises to 5.5%: financing or threat to business?

The city tax in the state of Bremen is being increased, which is causing a lot of discussion. The Bremen Senate has decided to increase it by half a percentage point, so that the tax is now 5.5 percent of the accommodation costs. Finance Senator Björn Fecker from the Greens justifies this measure with an acute budget emergency and the urgent need to increase the country's revenue. Part of the new funds will be used to promote Bremen as an attractive travel destination. However, the change in the law still has to be approved by the Bremen citizens.

The reaction to this increase is divided. The Dehoga hotel and restaurant association expresses sharp criticism and describes the city tax as damaging to business. Its general manager, 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 as merely an attempt to close the budget gaps.

Current regulations on city tax

The city tax has been levied in Bremen and Bremerhaven since 2013 and is subject to certain regulations. All paid private overnight stays in accommodation establishments are subject to tax until March 31, 2024. However, new regulations will come into force on April 1, 2024. A significant change is the extension of the tourism tax to business travelers, which means that overnight stays for business reasons will also be taxed. The tax rate for these overnight stays is 5 percent of the overnight stay fee.

However, some of the previous tax exemptions remain in place, for example for overnight stays by minors or for up to seven consecutive overnight stays. In addition, a new tax exemption will be introduced for businesses that exclusively serve non-profit, charitable or church purposes, provided appropriate proof is presented.

Tax details

The assessment basis for the tourism tax is the overnight accommodation fee without sales tax and without other services. Deposits for bookings also count towards the accommodation fee. If the accommodation provider does not know the guest's exact price, the price for a comparable room will be used.

The planned changes and increase in the city tax could therefore have a profound impact on the tourism industry in Bremen, while politicians continue to debate the necessity and impact of these measures.

Further information about the city tax and the current regulations is available here butenunbinden and service.bremen to find.