The property tax increases every year by “half of the revaluation rate”. However, the property value is determined every 4 years and the property tax is given based on this ‘current value’.

Who determines the value of my land or house?

If you ask “Who determines the value of my land or house?” the answer is the Valuation Commission. This commission consists of officials from the Land Registry Office, Municipality, Chamber of Commerce, Mukhtar’s Office and Tax Offices.

If you ask “But do they calculate correctly?” or “How is the increase in property value determined?”, that is a bit controversial. For example, you have a house on such and such a street in such and such a neighborhood of such and such a district. While it is assumed that the value of all the houses on that street has increased by 100 percent in 4 years, it can be assumed that the value of the houses on the street right across from it has increased by 40 percent.

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The most critical point here is that the newly determined rates form the basis for the property tax you will pay for 4 years. In other words, if we accept the value of your house as 100 liras, which the commission has just announced, you will pay your property tax based on 100 liras in 2022. In 2023, an increase of half the revaluation rate will be added to 100 liras. If we say the revaluation rate is 8 percent, you will pay tax based on 104 liras with a 4 percent increase. The following year, half the revaluation rate will be added to 104 liras. It will continue like this the following year. In other words, the 100 liras determined for today will also form the basis for the property tax you will pay in 4 years. But how will you learn your new property value? Citizens must learn the unit value determined for their own street or avenue or plot of land from the muhtars' offices or municipalities as soon as possible and apply to the tax court within 30 days if they see an 'exorbitant increase'.

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LAND SHARE IS ALSO IN VALUE

While determining the value of a house, apartment, shop, store, etc.; The “value of the land share” is also added to the building cost price. For example, if there are six apartments of 120 m2 each in a building with a 600 m2 land, the land value of 600/6 = 100 m2 is added to the building value of each with 120 m2. As the land becomes larger and the number of apartments is less valuable in the neighborhood, the property tax arising from the land share also increases. Depending on the situation, the value of the building increases by 50-100 percent or more in total. The property tax of newly constructed buildings cannot be lower than the land share tax calculated as 6 (or 3) per thousand.

A COURT DECISION BINDS THE ENTIRE NEIGHBORHOOD

IF a workplace or homeowner applies to the court claiming that the real estate values in the neighborhood where their real estate is located have been calculated incorrectly or excessively, and if the court finds them right, it changes the fate of the entire neighborhood, street or avenue, so to speak. The value of all real estate in that area is recalculated based on the unit value determined by the court. If there is a court decision, a taxpayer who is not aware of it may encounter a surprise such as 2 thousand liras in their next payment, while their previous tax payment was 5 thousand liras.