Responsibility, uses and monitoring
Municipalities are responsible for implementing the Valuation of Immovable Property Act. They set the WOZ value, which government bodies use to calculate taxes. The Property Assessment Board checks whether municipalities are implementing the Act properly.
Municipalities determine the value of immovable property
Municipalities are responsible for determining the WOZ value. How this is done is explained in the Valuation of Immovable Property Act. Municipalities pass on the WOZ value to the water authorities and the Tax and Customs Administration. They use the value to calculate taxes.
Using the WOZ value to calculate taxes
Three government bodies use the WOZ value in their calculations of various taxes:
- Municipalities use the WOZ value to calculate property tax and sometimes the sewerage charge.
- The Tax and Customs Administration uses the WOZ value to calculate income tax (notional rental value for owner-occupiers), corporation tax, gift tax and inheritance tax.
- Water authorities use the WOZ value to calculate water system tax.
The Valuation of Immovable Property Act ensures that government bodies base all taxes on immovable property on the same value.
Use of WOZ value for points system
The maximum rent for social housing partly depends on the WOZ value. Since 1 October 2015 the WOZ value has been used to help calculate the number of points for social housing.
Property Assessment Board monitors implementation
The Property Assessment Board checks whether municipalities are following the rules laid down in the Valuation of Immovable Property Act. The Act also sets out the Property Assessment Board's tasks.