Dresden (dpa / sn) – The city administration of Dresden wants to expand the bed tax and in future also levy it for business overnight stays. So far, only tourists and other guests staying overnight for private reasons have had to pay an accommodation tax. The city of Dresden is following a decision by the Federal Constitutional Court in March. The Karlsruhe judges had decided that municipalities can also levy the tax for business trips.

The city expects to be able to take in almost 14 million euros a year instead of the previous 10, as Finance Director Peter Lames (SPD) announced on Friday. The new regulation should apply from July 1, 2023. The Dresden city council still has to agree.

Bed taxes are levied in dozens of municipalities across Germany. Officially, they are called, for example, culture or tourism promotion tax, city tax, lodging tax or overnight stay tax. Usually, a certain percentage of the accommodation price is due per person and night, usually around five percent. Until the decision in Karlsruhe, only private overnight stays could be taxed.