Kreisumlage

Kreisumlage is a financial term used in Germany. It refers to a contribution that independent cities (kreisfreie Städte) and municipalities must pay to their respective district (Landkreis). This contribution is a key element of the financial system for local government administration in Germany. The Kreisumlage is levied by the district government and is used to finance the tasks and responsibilities that the district performs on behalf of its constituent municipalities.

The exact amount of the Kreisumlage is determined annually by the district council. It is usually calculated as a percentage of the local tax revenue of the contributing municipalities. This percentage can vary significantly between different districts and can change from year to year depending on the district's financial needs. The purpose of the Kreisumlage is to ensure that all municipalities within a district, regardless of their individual financial strength, can benefit from the services provided by the district.

These services can include areas such as public transport, social welfare, school administration, and environmental protection. The principle behind the Kreisumlage is solidarity, aiming to balance the financial disparities between municipalities and to ensure a uniform level of public services across the district. Independent cities, which are not part of a district, do not pay Kreisumlage. The system is designed to support the cooperative governance structure at the local level in Germany.