Start Date
6-4-2018 9:15 AM
End Date
6-4-2018 10:00 AM
Description
This presentation will discuss the history of the property taxation process in the Czech Republic. Real estate property tax, consisting of tax on land buildings, was introduced as of January 1, 1993. At that time, there was practically no real estate market, and no data base of real estate market prices was available. Hence, the tax rate is consequently not derived from real estate market values. Ministry of Finance did several attempts to switch to ad valorem tax. Last one was pilot study on value maps. It was proposed to use the “Tax Bases Map” to determine the tax base of land. Tax Bases Maps draw up individual municipalities in order to strengthen the fairness of Real Estate Property Tax, to utilize knowledge of the local situation and information on realized land prices. There will be a brief description of current Czech property tax system, its administration and sources of information and valuation of property. The conclusion will look at the way forward. In many Central and Eastern European countries are persisting area based property tax systems and recently is more and more taken into consideration possible way of market calibration of area tax base.
Publication Date
April 2018
Recommended Citation
Holmes, Alena JD, "Property taxation and valuation in the Czech Republic and the way forward" (2018). International Research Symposium. 16.
https://researchexchange.iaao.org/irs/irs18/sessions/16
Property taxation and valuation in the Czech Republic and the way forward
This presentation will discuss the history of the property taxation process in the Czech Republic. Real estate property tax, consisting of tax on land buildings, was introduced as of January 1, 1993. At that time, there was practically no real estate market, and no data base of real estate market prices was available. Hence, the tax rate is consequently not derived from real estate market values. Ministry of Finance did several attempts to switch to ad valorem tax. Last one was pilot study on value maps. It was proposed to use the “Tax Bases Map” to determine the tax base of land. Tax Bases Maps draw up individual municipalities in order to strengthen the fairness of Real Estate Property Tax, to utilize knowledge of the local situation and information on realized land prices. There will be a brief description of current Czech property tax system, its administration and sources of information and valuation of property. The conclusion will look at the way forward. In many Central and Eastern European countries are persisting area based property tax systems and recently is more and more taken into consideration possible way of market calibration of area tax base.