Erschließungsbeitrag

Erschließungsbeitrag translates to development contribution or development charge in English. It is a fee levied by municipalities in Germany to cover the costs of developing infrastructure in new building areas. This includes the creation or significant improvement of roads, sidewalks, street lighting, and public drainage systems, as well as the provision of water and sewage connections to the property line. The legal basis for this contribution is primarily found in the German Federal Building Code (Baugesetzbuch) and municipal statutes.

When a municipality designates a new area for development, it incurs costs for making that land ready for building. The Erschließungsbeitrag is a mechanism for the property owners in that newly developed area to bear a portion of these costs. The contribution is typically calculated based on the size of the property and its potential for development. Municipalities are generally required to inform property owners in advance about the impending development and the associated charges.

The purpose of the Erschließungsbeitrag is to ensure that the costs associated with opening up new residential or commercial areas are not solely borne by the general tax-paying public, but are instead financed by those who directly benefit from the improved infrastructure. This principle aims to promote fair cost allocation in urban development. Disputes regarding the amount or legality of an Erschließungsbeitrag can be subject to administrative review or legal action.