Landeskreditbank Baden-Württemberg - L-Bank

(1) Because, in 2000, Baden-Württemberg began to use a valuation method that employed net borrowings,
rather than gross borrowings as in previous years, a comparison of the figures for 2000 to those for previous
years has only limited value. Repayment expenses that were included in Revenues totaled EUR 3.5 billion
in 2004, EUR 3.1 billion in 2003, EUR 3.5 billion in 2002, EUR 2.6 billion in 2001 and EUR 3.5 billion in
2000.
(2) Includes revenues from borrowings and special financial transactions.
(3) Includes redemption of borrowings and special financial transactions.
Source: State Ministry of Finance, Department (Abteilung) 2, Team (Referat) 21.
For further information concerning the budget of Baden-Württemberg, see “—Budget of the State of Baden-
Württemberg.”
Taxation
The system of apportionment of the tax revenues in Germany and its states is governed by Articles 106,
106a and 107 of the German Constitution.
Article 106 allocates customs duties and specified special taxes to the federal government and estate taxes,
automobile taxes and other specified transaction taxes to the states. Article 106 further provides that revenue
arising from personal income tax, corporate income tax and value added tax shall belong jointly to Germany and
the individual states (Gemeinschaftsteuern). The revenue of municipalities consists principally of portions of
personal income tax, payments from the states, non-personal taxes, such as real estate (Grundsteuer) and trade
tax (Gewerbesteuer), and local tax on consumption and expenditures (örtliche Verbrauchs- und
Aufwandsteuern). Since January 1, 1996, pursuant to Article 106a of the German Constitution, a certain amount
of the federal government’s revenue has been allocated to public transportation in the various states.
Accordingly, the tax revenues of Baden-Württemberg include taxes that are due solely to Baden-
Württemberg and Baden-Württemberg’s share of the joint federal and state taxes.
The following table sets forth the tax revenues of Baden-Württemberg for each of the years indicated:
Tax Revenues
2004 2003 2002 2001 2000
(in millions of EUR)
Share of the Gemeinschaftsteuern and share of trade tax ........ 19,611 19,387 18,669 19,342 20,369
Taxes exclusively allocated to the state ...................... 2,694 2,610 2,634 2,721 2,618
Total ................................................. 22,305 21,997 21,304 22,063 22,987
Source: State Ministry of Finance, Department 5, Team 52.
The following table sets forth the projected tax receipts of Baden-Württemberg for each of the years
indicated:
Projected Tax Revenues
2008(1) 2007(1) 2006(1) 2005(1)
(in millions of EUR)
Projected tax revenues (1) ......................................... 25,100 24,060 22,960 21,880
(1) Tax Appraisal May 2004.
Source: State Ministry of Finance, Department 5, Team 52.
56