Article 104a [Apportionment of expenditure]
(1) The Federation and the States separately meet the
expenditure resulting from the discharge of their respective
tasks insofar as this Constitution does not provide otherwise.
(2) Where the States act as agents of the Federation, the
Federation meets the resulting expenditure.
(3) Federal statutes to be executed by the States and granting
money payments may make provision for such payments to be
met wholly or in part by the Federation. Where any such
statute provides that the Federation meets one half of the
expenditure or more, it is implemented by the States as agents
of the Federation. Where any such statute provides that the
States meet one quarter of the expenditure or more, it requires
the consent of the Senate.
(4) The Federation may grant the States financial assistance for
particularly important investments by the States or communes or
associations of communes, provided that such investments are
necessary to avert a disturbance of the overall economic
equilibrium or to equalize differences of economic capacities
within the federal territory or to promote economic growth.
Details, especially concerning the kinds of investments to be
promoted, are regulated by a federal statute requiring the
consent of the Senate or by administrative arrangements under
the federal budget law.
(5) The Federation and the States meet the administrative
expenditure incurred by their respective authorities and are
responsible to each other for ensuring proper administration.
Details are regulated by a federal statute requiring the consent
of the Senate.
Article 105 [Legislative powers]
(1) The Federation has exclusive power to legislate on customs
duties and fiscal monopolies.
(2) The Federation has concurrent power to legislate on all
other taxes the revenue from which accrues to it wholly or in
part or where the conditions provided for in Article
72 (2) apply.
(2a) The States have power to legislate on local excise taxes as
long and insofar as they are not identical with taxes imposed by
federal legislation.
(3) Federal laws relating to taxes the receipts from which
accrue wholly or in part to the States or communes or
associations of communes require the consent of the Senate.
Article 106 [Apportionment of tax revenue]
(1) The yield of fiscal monopolies and the revenue from the
following taxes belongs to the Federation:
1. customs duties;
2. excise taxes insofar as they do not accrue to the States
pursuant to Paragraph (2), or jointly to the Federation and the
States in accordance with Paragraph (3), or to the communes in
accordance with Paragraph (6);
3. road freight tax;
4. capital transaction taxes, the insurance tax, and the bill of
exchange tax;
5. non-recurrent levies on property, and contributions imposed
for the purpose of implementing the equalization of burdens
legislation;
6. income and corporation surtaxes;
7. charges imposed within the framework of the European
Communities.
(2) Revenue from the following taxes belong to the States:
1. wealth tax;
2. inheritance tax;
3. motor vehicle tax;
4. such taxes on transactions as do not accrue to the Federation
pursuant to Paragraph (1) or jointly to the Federation and the
States pursuant to Paragraph (3);
5. beer tax;
6. gaming casinos levy.
(3) Revenue from income taxes, corporation taxes, and turnover
taxes belong jointly to the Federation and the States (joint taxes)
to the extent that the revenue from the income tax is not
allocated to the communes pursuant to Paragraph (5). The
Federation and the States equally share the revenues from
income taxes and corporation taxes. The respective shares of
the Federation and the States in the revenue from the turnover
tax are determined by a federal statute requiring the consent of
the Senate. Such determination is based on the following
principles:
1. The Federation and the States have an equal claim to
coverage from current revenues of their respective necessary
expenditures. The extent of such expenditures is determined
giving due consideration to financial planning for several years
ahead.
2. The coverage requirements of the Federation and of the
States are coordinated in such a way that a fair balance is
struck, any overburdening of taxpayers precluded, and
uniformity of living conditions in the federal territory
ensured.
In addition, for the apportionment of the value added tax to
Federation and States it will be taken into account that after
1 Jan 1996 the States' income tax revenues will be reduced due
to child benefits. Details are regulated by a federal statute
according to Sentence 3.
(4) The respective shares of the Federation and the States to the
revenue from the turnover tax are newly apportioned whenever
the relation of revenues to expenditures in the Federation
develops substantially differently from that of the States; this
does not apply to reduced tax revenues which are included into
the calculation of the apportionment of value added tax
according to Paragraph (3) Sentence 5. Where federal
legislation imposes additional expenditures on or withdraws
revenue from the States, the additional burden may be
compensated for by allocation of federal grants under a federal
statute requiring the consent of the Senate, provided such
additional burden is limited to a short period of time. Such
statute lays down the principles for calculating such grants and
distributing them among the States.
(5) A share of the revenue from the income tax belongs to the
communes, to be passed on by the States to their communes on
the basis of income taxes paid by the inhabitants of the latter.
Details are regulated by a federal statute requiring the consent
of the Senate. Such statute may provide that communes assess
the rate which is applicable to this communal share.
(6) Revenue from taxes on real estate and on local industry and
trade belongs to the communes; revenue from local excise taxes
belongs to the communes or, as may be provided for by State
legislation, to associations of communes. Communes are
authorized to assess, within the framework of the relevant
statutes, the rates at which the taxes on real estate and on local
industry and trade are levied locally. Where there are no
communes in a State, revenue from taxes on real estate and on
local industry and trade as well as from local excise taxes
belongs to the State. The Federation and the States may
participate, by virtue of an apportionment, in the revenue from
the tax on local industry and trade. Details regarding such
apportionment are regulated by a federal statute requiring the
consent of the Senate. In accordance with State legislation,
taxes on real estate and on local industry and trade as well as
the communes' share of revenue from the income tax may be
taken as a basis for calculating the amount of apportionment.
(7) An overall percentage, to be determined by State legislation,
of the State share of total revenue from joint taxes belongs to
the communes or associations of communes. In all other
respects State legislation determines whether and to what extent
revenue from State taxes belong to communes or associations of
communes.
(8) Where in individual States or communes or associations of
communes the Federation causes special facilities to be provided
which directly result in an increase of expenditure or a loss of
revenue (special burden) to these States or communes or
associations of communes, the Federation grants the necessary
compensation where and insofar as such States or communes or
associations of communes cannot reasonably be expected to
bear such special burden. In granting such compensation, due
account is being taken of third-party indemnities and financial
benefits accruing to the States or communes or associations of
communes concerned as a result of provision for such facilities.
(9) For the purpose of this Article, revenues and expenditures
of communes or associations of communes are deemed to be
State revenues and expenditures.
Article 106a [Railroads]
Starting 1 Jan., 1996, the States can claim a sum out of federal
tax revenues for public local transport of persons. Details are
regulated by federal statute requiring the consent of the Senate.
The sum mentioned in the first sentence is not included in the
calculation of financial strength according to Article
107 (2).
Article 107 [Financial equalization]
(1) Revenue from State taxes and the State share of revenue
from income and corporation taxes belongs to the individual
States to the extent that such taxes are collected by revenue
authorities within their respective territories (local revenue). A
federal statute requiring the consent of the Senate may provide
in detail for the delimitation as well as the manner and scope of
allotment of local revenue from corporation and wage taxes.
Such statute may also provide for the delimitation and allotment
of local revenue from other taxes. The State share of revenue
from the turnover tax belongs to the individual States on a per
capita basis; a federal statute requiring the consent of the Senate
may provide for supplementary shares not exceeding one
quarter of a State share to be granted to States whose per capita
revenue from State taxes and from the income and corporation
taxes is below the average of all the States combined.
(2) It has to be ensured by statute, that a reasonable
equalization between financially strong and financially weak
States is achieved; due consideration being given to financial
capacity and financial requirements of communes or
associations of communes. Such statute has to specify the
conditions governing equalization claims of States entitled to
equalization payments and equalization liabilities of States
owing equalization payments as well as the criteria for
determining the amounts of equalization payments. Such statute
may also provide for grants to be made by the Federation from
federal funds to financially weak States in order to complement
the coverage of their general financial
requirements (supplementary grants).
Article 108 [Revenue administration]
(1) Customs duties, fiscal monopolies, excise taxes subject to
federal legislation, including the import turnover tax, and
charges imposed within the framework of the European
Communities are administered by federal revenue authorities.
The organization of these authorities is regulated by federal
statute. The heads of authorities at the intermediate level are
appointed in consultation with the respective State governments.
(2) All other taxes are administered by State revenue
authorities. The organization of these authorities and the
uniform training of their civil servants may be regulated by a
federal statute requiring the consent of the Senate. The heads
of authorities at the intermediate level are appointed in
agreement with the Government.
(3) To the extent that taxes accruing wholly or in part to the
Federation are administered by State revenue authorities, those
authorities act as agents of the Federation. Article 85 (3)
& (4) applies with the Minister of Finance being substituted
for the Government.
(4) In respect of the administration of taxes, a federal statute
requiring the consent of the Senate may provide for
collaboration between federal and State revenue authorities. or
in the case of taxes under Paragraph (1) for their administration
by State revenue authorities, or in the case of other taxes for
their administration by federal revenue authorities. where and
to the extent that the execution of revenue statutes is
substantially improved or facilitated thereby. As regards taxes
the revenue from which accrues exclusively to communes or
associations of communes, their administration may wholly or
in part be transferred by the States from the appropriate State
revenue authorities to communes or associations of communes.
(5) The procedure to be applied by federal revenue authorities
is laid down by federal legislation. The procedure to be applied
by State revenue authorities or, as envisaged in Paragraph (4)
2, by communes or associations of communes may be laid
down by a federal statute requiring the consent of the Senate.
(6) The jurisdiction of revenue courts is uniformly regulated by
federal legislation.
(7) The Government may issue appropriate general
administrative rules which, to the extent that administration is
entrusted to State revenue authorities or communes or
associations of communes, require the consent of the Senate.
Article 109 [Budget management in the Federation and the States]
(1) The Federation and the States are autonomous and
independent of each other in their budget management.
(2) The Federation and the States give due regard in their
budget management to the requirements of overall economic
equilibrium.
(3) Through federal legislation requiring the consent of the
Senate principles applicable to both the Federation and the
States may be established governing budgetary law,
responsiveness of budget management to economic trends, and
financial planning to cover several years ahead.
(4) With a view to averting disturbances of the overall
economic equilibrium, federal legislation requiring the consent
of the Senate may be enacted providing for:
1. maximum amounts, terms and timing of loans to be raised by
territorial entities or special purpose associations, and
2. an obligation on the part of the Federation and the States to
maintain interest-free deposits at the Bundesbank (reserves for
counterbalancing economic trends).
Authorizations to issue the relevant ordinances may be
conferred on the Government only. Such ordinances require
the consent of the Senate. They have to be repealed insofar as
the House of Representatives so demands; details are regulated
by federal legislation.
Article 110 [Budget and budget law of the Federation]
(1) All revenues and expenditures of the Federation are
included in the budget; in respect of federal enterprises and
special assets, only allocations thereto or remittances therefrom
need be included. The budget has to be balanced as regards
revenue and expenditure.
(2) The budget is laid down in a statute covering one year or
several fiscal years separately before the beginning of the first
of those fiscal years. Provision may be made for parts of the
budget to apply to periods of different duration, but divided into
fiscal years.
(3) Bills within the meaning of Paragraph (2) 1 as well as bills
to amend the budget statute and the budget are submitted
simultaneously to the Senate and to the House of
Representatives; the Senate is entitled to state its position on
such bills within six weeks or. in the case of amending bills,
within three weeks.
(4) The budget statute may contain only such provisions as
apply to revenues and expenditures of the Federation and to the
period for which the budget statute is being enacted. The
budget statute may stipulate that these provisions cease to apply
only upon the promulgation of the next budget statute or, in the
event of an authorization pursuant to Article 115, at a
later date.
Article 111 [Interim budget management]
(1) Where, by the end of a fiscal year, the budget for the
following year has not been laid down by statute, the
Government may, until such statute comes into force, make all
payments which are necessary:
(a) to maintain statutory institutions and to carry out measures
authorized by statute;
(b) to meet the Federation's legal obligations;
(c) to continue building projects, procurements, and other
services, or to continue to grant subsidies for these purposes,
provided that amounts have already been appropriated in the
budget of a previous year.
(2) To the extent that revenues provided by specific legislation
and derived from taxes or duties or any other sources, or the
working capital reserves, do not cover the expenditures referred
to in Paragraph (1), the Government may borrow the funds
necessary for the conduct of current operations up to a
maximum of one quarter of the total amount of the previous
budget.
Article 112 [Expenditures in excess of budgetary estimates]
Expenditures in excess of budgetary appropriations and extra
budgetary expenditures require the consent or the Minister or
Finance. Such consent may be given only in the case of an
unforeseen and compelling necessity. Details may be regulated
by federal legislation.
Article 113 [Consent to change expenditures / revenues]
(1) Statutes increasing the budget expenditures proposed by the
Government or involving or likely in future to cause new
expenditures requires the consent of the Government. This also
applies to statutes involving or likely in future to cause
decreases in revenue. The Government may demand that the
House of Representatives postpone its vote on such bills. In
this case the Government states its position to the House of
Representatives within six weeks.
(2) Within four weeks after the House of Representatives has
adopted such a bill, the Government may demand that it votes
on that bill again.
(3) Where the bill has become a statute pursuant to Article
78, the Government may withhold its consent only within
six weeks and only after having initiated the procedure provided
for Paragraph (1) 3 & 4 or in Paragraph (2). Upon the expiry
of this period such consent is deemed to have been given.
Article 114 [Rendering and auditing of accounts]
(1) The Minister of Finance on behalf of the Government has to
submit annually to the House of Representatives and to the
Senate for their approval an account, covering the preceding
fiscal year, of all revenues and expenditures as well as of
property and debt.
(2) The Federal Audit Office, the members of which enjoy
judicial independence, audits the account and examines the
management of the budget and the conduct of business as to
economy and correctness. The Federal Audit Office submits an
annual report directly to the Government as well as to the
House of Representatives and to the Senate. In all other
respects the powers of the Federal Audit Office are regulated by
federal legislation.
Article 115 [Procurement of credit]
(1) The borrowing of funds and the assumption of pledges,
guarantees or other commitments, as a result of which
expenditure may be incurred in future fiscal years, requires
federal legislative authorization indicating, or permitting
computation of, the maximum amounts involved. Revenue
obtained by borrowing may not exceed the total of expenditures
for investments provided for in the budget; exceptions are
permissible only to avert a disturbance of the overall economic
equilibrium. Details are regulated by federal legislation.
(2) In respect of special assets of the Federation, exceptions to
the provisions of Paragraph (1) may be authorized by federal
legislation.