Hundesteuer is a tax that is paid by dog owners, similar to a dog license in other countries.
In the 19th Century the German state considered it a luxury for a private person to have a dog, hence the tax.
There are however exceptions, eg. for guard dogs – as long as these are owned by a company.
Dogs that are particularly dangerous often pay a higher rate of tax, whereas guide dogs pay less tax in some areas of Germany.
To hear a simple explanation and a short discussion in German, listen to the podcast:
(Press the “play” button to listen to the podcast)