Leipzig needs more revenue: the Greens are calling for a higher rate of accommodation tax

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Ahead of the forthcoming council meeting on 2 September, Torsten Bonew, the councillor responsible for finance, has tabled a proposal to amend the by-laws governing the accommodation tax. The proposal essentially concerns only the option to submit tax returns electronically. However, the Bündnis 90/Die Grünen parliamentary group felt that, since a decision on amending the regulations was already on the agenda, it would be appropriate to reconsider the rate of the tax as well. They have therefore tabled a corresponding amendment.

The Greens’ parliamentary group on Leipzig City Council wants to increase the accommodation tax from the current five per cent to eight per cent. “According to our calculations, this could generate around 8.3 million euros in additional revenue for Leipzig’s budget in 2027 and around 8.4 million euros in 2028,” the group states. After all, the city should really be looking for ways to increase its own revenue when expenditure is getting increasingly out of hand.

“We’ve been talking for months about where Leipzig can make further savings. But a responsible budgetary policy must not consist solely of lists of cuts,” says Sylvia Herbst-Weckel, the parliamentary group’s spokesperson on financial policy. “We must scrutinise expenditure critically, whilst at the same time making use of responsible ways to increase our revenue. Otherwise, in the end, there will be a shortfall of funds for clubs, culture, social services, or for children and young people.”

She emphasises that the additional burden on visitors to Leipzig would remain manageable. An overnight guest in a commercial accommodation establishment in Leipzig spends an average of around 200 euros per day. The average length of stay is 1.9 days. This means that, in mathematical terms, expenditure of around 380 euros during an average stay would be offset by an additional accommodation tax of approximately 5.70 euros.

“We’re talking about less than six euros extra for an average stay – and, on the other hand, more than eight million euros for Leipzig. Given our budgetary situation, the balance is clear to us,” says Sylvia Herbst-Weckel.

Tourism figures remain high

Since the introduction of the accommodation tax in 2023, Leipzig has continued to enjoy historically high levels of tourism. In 2023, a record number of overnight stays was set; in 2024, more visitors came to Leipzig than ever before; and 2025, despite a slight decline, was the third-best year for tourism since records began.

“Of course, we want Leipzig to be a strong and attractive tourist destination. But the idea that someone would miss out on the Book Fair, the Bach Festival, a football match, a conference or a weekend in Leipzig because of three euros a night is not convincing,” says Sylvia Herbst-Weckel.

However, the Alliance 90/The Greens parliamentary group wants to introduce the increase with a social exemption: apprentices and students who can prove they need to stay overnight in Leipzig as part of their training or studies are to be exempt from the accommodation tax. This is estimated to affect less than one per cent of overnight stays and will result in a reduction in the maximum additional revenue of around 150,000 euros.

More money for Leipzig’s budget

At the same time, however, the Greens also want to see the by-laws adapted to reflect the growing importance of water-based tourism. In future, moorings and other floating accommodation are to be explicitly classified as accommodation facilities.

“Anyone who rejects additional revenue is free to do so. But then, during the next budget discussions, the question must also be answered as to where these eight million euros are to come from instead,” says Sylvia Herbst-Weckel, addressing the issue of the city’s strained budget. “Fiscal responsibility does not just mean calling for savings in the abstract. It means openly acknowledging the consequences of these decisions – including to the clubs, cultural institutions and social organisations that bear the brunt of them.”

The city must also approve the 2027/2028 biennial budget with borrowing in the hundreds of millions, because the budget is simply being eaten up by the mandatory tasks assigned by the federal government. Any additional revenue provides a little breathing space, even if it does not really solve the debt problem.

Sylvia Herbst-Weckel believes that, whilst we’re at it, the visitor card could also be made a little more attractive. “We consider the visitor card under discussion – with potential benefits such as discounts on public transport or tourist offers – to be an interesting idea in principle, one that should be examined independently of the tax increase. Ultimately, politics is not judged by what it promises, but by what it decides. Leipzig needs both: an attractive tourist destination and a budget that keeps our city able to act.”

From 5 to 8

The Greens’ proposal is therefore to levy an accommodation tax of 8 per cent instead of 5 per cent.

“In Dresden, the tax rate has so far been 6 per cent, whereas in Leipzig it is only 5 per cent. An increase of 3 per cent is within reasonable limits and, based on the 2025 overnight stay figures, would result in an increase in tax revenue compared with the budgeted figures (€13.9 million in 2027 and €14 million in 2028) of €8.3 million to €22.24 million in 2027 and €8.4 million to €22.4 million in 2028,” the parliamentary group calculates in its amendment.

“An overnight stay, on the other hand, would only cost an average of around €3 more, which is unlikely to deter anyone from booking one.”