Munich (dpa/lby) – In the dispute over the introduction of a bed tax for hotel stays by the municipalities, Bavaria’s Interior Minister Joachim Herrmann has announced a timely change to the Municipal Tax Act. The Interior Ministry will, as decided by the state government, present a speedy change in the law, said the CSU politician on Thursday in Munich.
With the amendment to the law, municipalities should be prohibited from introducing a corresponding tax, as is currently planned by the state capital of Munich. Should Munich apply for the introduction of an accommodation tax before the change comes into force, this will be rejected for legal reasons. In this case, Munich’s Mayor Dieter Reiter (SPD) had announced a lawsuit before the administrative court.
In contrast to experts and municipalities, Herrmann expects negative consequences for tourism as a result of municipal bed taxes. “Especially in high-priced Munich, accommodation taxes would also make offers in the lower and middle price segment more expensive. That would be at the expense of less solvent guests in particular,” he said. Not everyone stays in a five star hotel.
“In 1979 we abolished “minor taxes” in Bavaria, for good reason, such as the ice cream tax, the amusement tax or the beverage tax,” emphasized Herrmann, referring to a simplification of the municipal tax system and an improvement in the economic framework in Bavaria. In addition, at the beginning of 2010, the federal legislature lowered the sales tax rate for business rentals of living rooms and bedrooms to seven percent in order to relieve the burden on the accommodation industry.
“The state capital Munich would counteract the relief goals with an overnight tax in order to improve its own city treasury,” said Herrmann. In view of the heavy burden caused by the corona pandemic and the current energy crisis, that would be a fatal signal. “So far, no municipality in Bavaria has levied an overnight stay tax.
Herrmann also expressly rejected the argumentation of the Bavarian Association of Cities: “The fact that municipalities in other federal states or other European countries levy accommodation taxes is the famous comparison between apples and pears. And the state capital Munich is already benefiting from the above-average price level for overnight stays, for example in Form the sales tax.”
The trigger for the dispute was the announcement by the state capital Munich that it was the first Bavarian municipality to demand a five percent accommodation tax from hotels. While the state government on the side of the hotel and catering industry is against it, the city council and the city of Munich are demanding that municipal sovereignty be allowed to decide independently on the relevant taxes. The Federal Constitutional Court only declared the accommodation tax to be constitutional in March.
