Changes to Taxes and Charges in 2026

On 22 June, the Rodgau Town Council approved a series of adjustments to taxes and charges, as well as the introduction of new taxes.

Financial situation & background

Are these measures necessary?

Unfortunately, yes. An initial analysis of the city’s budgetary and financial situation revealed a shortfall of €14.1 million in the 2026 profit and loss account, as well as a deficit of €15.3 million in the financial plan. The budget was therefore not balanced in accordance with statutory requirements. However, approval of the budget by the local government supervisory authority requires the overall budget to be balanced.

There are various reasons for the financial situation

• Trade tax revenue has plummeted due to the economic situation (from €33 million in 2023 to a forecast of €22.4 million in 2026). The remaining sources of revenue are unable to make up for these shortfalls.

• The services that Rodgau, as a local authority, is required to provide under federal and state legislation have steadily increased in scope, without any corresponding financial compensation being provided. For example,
  • A legal right to a nursery place, including the provision of the necessary infrastructure at nurseries
  • Partial exemption from nursery fees
  • Municipal heat planning
• The following services, amongst others, are funded by the town of Rodgau’s ever-increasing district and school contributions
  • Legal obligations under the Integration Assistance Scheme
  • Care support
  • All-day childcare in primary schools
  • The increase in the district and/or school levy amounted to 28.4% between 2023 and 2026 alone – that is an additional €12.437 million
• The principle of ‘whoever places the order pays’ is not adhered to (lack of a causal link).

• The costs of staff, materials and outsourced services have also risen across the board as a result of collective bargaining agreements, energy crises and rising inflation

Savings

To begin with, since November 2025, those in charge have been exploring ways to make internal savings during a number of closed-door meetings within the municipal bodies (the City Council and the City Executive).

For example, , amongst other things, the following cost-cutting measures were approved.

• The number of meetings has been reduced from 80 to 60 per year
  • Potential savings of €35,200 per year
• The number of staff working in the parliamentary group offices has been reduced
  • Savings of around €135,601 per year
• The number and size of the committees and the resources allocated to the parliamentary group offices have been streamlined:
  • Savings in 2026: approx. €150,000
  • Savings in 2027: approx. €200,000
• A recruitment freeze has been imposed for an initial period of 12 months.
  • Savings in 2026: approx. €250,000
  • Savings in 2027: approx. €1 million
• The hours of nursery care, and consequently the staff costs, have been reduced:
  • Savings in 2026: approx. €300,000
  • Savings in 2027: approx. €850,000
• The budget for park maintenance has been cut by €150,000 for 2026
• The town festival will not take place in 2026, thereby saving €25,000
  
  

Although the total savings of around 5.6 million euros made a valuable contribution, However, a shortfall of 8.5 million euros remained. In order to achieve the required balance, further options were explored. Ultimately, a decision had to be made regarding additional revenue through the increase or introduction of new local taxes and charges.

Overview of consolidation measures

The overview shows the key planned new revenue streams and savings for 2026 and 2027

Tax increases & new taxes

Tax increases

The following taxes are being increased.

With effect from 1 January 2026

• Property Tax B – Assessment rate increased from 877.5% to 1,250%
• Business tax – from 380% to 390%

From 1 July 2026

• Dog licence fee - per year for the
  • first dog from €60 to €120
  • second dog from €90 to €200
  • the third and each subsequent dog from €120 to €280
  • Dangerous dogs: an additional €600 per year on top of the tax mentioned above – applies to:
    • so-called ‘listed dogs’ that fail the compulsory temperament test
    • “Dogs following a biting incident”in accordance with Section 2(2) of the Hessian Hazard Prevention Regulations
      
      
• Gaming machine tax – detailed information can be found in the by-laws on the levying of a tax on gaming machines and on gambling for money or goods

New taxes

Newly introduced taxes are

With effect from 1 January 2026

• Property tax C: 3.750 % (new) – for undeveloped plots of land that have been ready for development for three years
  
  

From 1 July 2026

Second home tax – amounts to 10 per cent of the net rent excluding service charges

From 1 October 2026

Accommodation tax – a 5% accommodation tax on the accommodation service alone (for example, just a hotel room, not including breakfast)

Fee increases

• Meal allowance
  • for nursery places, from the current €85 to €135 per month
    (this includes breakfast, lunch, an afternoon snack and drinks)
  • for nursery places until 12.30 pm without lunch: from €15 to €24 per month
    (this includes breakfast and drinks)
• Replacement dog tag – from €2.50 to €25
  • The aim of the adjustment is to cover costs
  • Furthermore, the increase is intended to prevent the misuse of the low fees, for example by purchasing a ‘replacement tag’ for another animal
• Further charges for general administrative services, such as copies and certifications:
  (an overview of changes to the Administrative Costs Regulations )