The Netherlands Study into Discrepancy Between Assessed Values and Market Prices
Luc D. Hermans, Ruud M. Kathmann, Marija Bockarjova, Jacob A. Zevenbergen
The current Dutch system for real estate assessment is based on the Special Act for Real Estate Assessment (Wet WOZ). This act has been in effect since 1995. The initial act provided that every real estate property received a assessment every four years. Since 2008 assessments are to be done annually (Gieskes and Kathmann, 2010). The Special Act for Real Estate Assessment transformed the Dutch property tax system from a more or less area-based system to an ad valorem system or in other words, a system based on the market value of the property on the value reference date. This value reference date is always January 1st on the year before the active tax year (Bervoets et al, 2016). The assessed value serves as the tax base for several local and national taxes in the Netherlands. The approximated levied taxes based on the assessed value are about 11 billion euros yearly. Besides taxation the assessed values are also used for several other formal purposes. Therefore, the Netherlands Council for Real Estate Assessment places importance on the quality of the assessments and the discrepancies between the assessed values and the market prices.
Event: World Bank Land Conference 2024 - Washington
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