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"The lowest level of official territorial division in Germany" would indeed be a Gemeinde, which, AFAIK, has no attendant expression in American English. In America, Villages, Towns, Cities etc. do not denote a rank, as the do in Germany.
To make matters even more complicated, (and tangentially mentioned in the lower part of the article,) in law, German Kommunen or municipalities sometimes are called "politische Gemeinden" with no reference to ranking.
This article should be completely rewritten, if not, deleted. BsBsBs (talk) 11:44, 16 February 2014 (UTC)