Start Date
30-10-2017 1:00 PM
End Date
30-10-2017 2:45 PM
Description
The appraisal for property taxation in the Netherlands is regulated in the Act for Real Estate Assessment, which states that the market value is the basis for taxation. The act makes the 388 municipalities responsible for the valuation of over 9 million properties. The regulations force to systematically assess porperties by using methods of computer assisted mass appraisal. Disputes on the valuation are ruled upon by tax judges. These judges expect that each assessed value has an individual valuation report, explaining the assessed value. With this expectation the court expect an unachievable accuracy. This expectation continuously forces assessors to manually overrule the models that are used for the valuation. The Netherlands Council for Real Estate Assessment, which is the authority that is responsible for the quality control of the valuation processes at municipalities, considers these manual overrules by the assessors a serious risk for the quality and consistency of the assessed values. To combat this risk we implemented certain measures, which we will elaborate on in our presentation.
Publication Date
October 2017
Recommended Citation
Kuijper, Marco; Kathmann, Ruud M.; and Bervoets, Ben, "The tension between legislation and common valuation principles in the Netherlands" (2017). International Research Symposium. 7.
https://researchexchange.iaao.org/irs/irs17/sessions/7
The tension between legislation and common valuation principles in the Netherlands
The appraisal for property taxation in the Netherlands is regulated in the Act for Real Estate Assessment, which states that the market value is the basis for taxation. The act makes the 388 municipalities responsible for the valuation of over 9 million properties. The regulations force to systematically assess porperties by using methods of computer assisted mass appraisal. Disputes on the valuation are ruled upon by tax judges. These judges expect that each assessed value has an individual valuation report, explaining the assessed value. With this expectation the court expect an unachievable accuracy. This expectation continuously forces assessors to manually overrule the models that are used for the valuation. The Netherlands Council for Real Estate Assessment, which is the authority that is responsible for the quality control of the valuation processes at municipalities, considers these manual overrules by the assessors a serious risk for the quality and consistency of the assessed values. To combat this risk we implemented certain measures, which we will elaborate on in our presentation.