Complaint regarding real property rating assessment
Concurrently with last year’s price trend on the real estate market, the property tax assessment authorities have increased real property rating assessments considerably. The real property rating assessments as of 1st October 2008 are now being sent out to owners of commercial properties.
In the light of the present development of the real estate market there are reasons in favour of a critical examination of the real property rating assessment as there might be a possibility of obtaining considerable reductions of the property taxes and duties.
In municipalities where a financial levy is imposed, it will be possible to obtain considerable savings in connection with reduction of the real property rating assessment, which is explained in the example below. Moreover, contrary to the land tax, the financial levy is not subject to property tax increase limitations. The financial levy will, therefore, increase concurrently with the real property rating assessment.
Examples of yearly saving:
Before complaint: Real Estate property reting assessment as of 1.st October 2008, DKK 50,000.000, of this land value amounts to, DKK 3,500.000, Financial Ievy (5,75 per mille), DKK 267,088.
After Complaint: Real property rating assessment as of 1.st October 2008, DKK 35,000.000, of this land value amounts to, DKK 3,500.000, Financial Ievy (5,75 per mille), DKK 180,838.
In the above example the yearly saving amounts to DKK 86,250 equivalent to 32.29 per cent.
During several years CB Richard Ellis has advised and assisted companies and property investors in i.a. complaints regarding real property rating assessments. We have developed a concept of valuation, which has proved to be extremely useful and applicable.
Please do not hesitate to contact CB Richard Ellis A/S for non-committal discussions about complaints regarding real property rating assessments.
East of the Great Belt: Per Alexandar H.G. Weinreich, tel. +45 70 22 96 01
West of the Great Belt: Morten Nøhr and Niels Lund Lihn, tel. +45 70 22 96 02