New rules must correct maligned land values

In connection with new property assessments, many home owners have been surprised that their land is assessed to be worth much more than they will probably ever be able to get for it.

The Valuation Agency will now meet them with a change in the way the value of the land is calculated.

This is according to Politiken, which has seen a draft of a new practice change that has been sent out for consultation.

The Assessment Agency suggests that in future the assessment is carried out according to what is realistic to build on the land.

– A property should generally be assessed and taxed based on possible uses that are real and realizable, the agency writes in the draft.

Today, the land must be assessed according to what the letter of the law states is the best possible use.

This has meant that some homeowners with large lots have been taxed on the basis that more houses or maybe even apartment buildings could be built there – regardless of the fact that it will probably never happen.

The result is often that the land is assessed – and thus also taxed – at an unrealistically high value.

Henning Boye Hansen is a chief consultant at BDO, and he tells Politiken that such a change in practice will help the home owners who have gotten stuck in the system.

Among them, you will find 13,000 smaller country properties, whose cadastres have been set to be worth much more than the agricultural land that surrounds them.

/ritzau/

Source: www.kristeligt-dagblad.dk