When looking into the question of what taxes are, you often ask who writes the associated tax laws. In Germany, there is a legislative procedure for this. It is the responsibility of the legislative body to draft, develop and adopt tax laws. Thus, the legislative initiative is on the one hand in the hands of the government. But countries can also develop and submit their own draft laws. In addition, the parties and groups represented in the Bundestag also participate in the legislative process. If the Bundestag has adopted a bill, the Bundesrat also decides on its adoption. If he also agrees, the Federal Government and then the Federal President will receive the bill for signature. Then the Federal Law Gazette publishes the new law. This brings it into force. But there are many ways to influence a coming law on the way there. Associations and other stakeholders in particular, but also ordinary citizens, use these opportunities to participate in the drafting of new laws.

Since Germany finances its expenditure through taxes, it also has the corresponding laws governing the collection of taxes. But who writes these tax laws? Who determines whether a certain situation is taxable? Or who owes the tax and how high it is? All this in Germany is subject to a clear legislative procedure, the basis of which is the Basic Law.

Now we look at how tax laws come about and who actually writes them. Especially with regard to tax laws, special features apply with regard to the legislative initiative. But this is what we come to in the next chapter.

The legislature in Germany is divided into three bodies: the Federation, which is headed by the Federal Government, the Bundestag with its deputies and the Bundesrat, in which the representatives of the respective governments of the federal states sit. In principle, all three institutions have the opportunity to draft laws and submit them for vote.

However, when it comes to tax laws, there are restrictions. Article 105 of the GG stipulates that in questions concerning customs and financial monopolies, the Federation is entitled to the exclusive legislative initiative. A competing legislative initiative comes into question in those cases in which, according to the Basic Law, tax jurisdiction lies with both the Federation and the Länder. In addition, there are also tax laws that only the countries can enact on their own. These are excise and expense taxes, where there is no equivalent in federal taxes. For example, the Länder determine the amount of the real estate transfer tax rate, while the municipalities determine the levy rate of their business tax and real estate tax themselves.

Here we provide an overview of the respective tax jurisdiction for the following taxes, although this is only exemplary: