With the skyrocketing real estate values, I just found out that my city now uses two different values for calculating taxes, a lower value based on the last assessment, and for transfer tax, which is a higher value updated annually based on the tax value and a coefficient. For 2023, in our area, this coefficient is 1.3. This means that the minimum value for calculating the transfer tax is 30% higher than the municipal value of the property.
So I’m wondering: why don’t they use the same value in both cases? Wouldn’t that be more logical?
For reference, the municipal value was updated in 2022, and that year, the municipal value was equal to the value for calculating the transfer duty. Does this mean they believe that houses have increased in value by 30% in one year?
With the skyrocketing real estate values, I just found out that my city now uses two different values for calculating taxes, a lower value based on the last assessment, and for transfer tax, which is a higher value updated annually based on the tax value and a coefficient. For 2023, in our area, this coefficient is 1.3. This means that the minimum value for calculating the transfer tax is 30% higher than the municipal value of the property.
So I’m wondering: why don’t they use the same value in both cases? Wouldn’t that be more logical?
For reference, the municipal value was updated in 2022, and that year, the municipal value was equal to the value for calculating the transfer duty. Does this mean they believe that houses have increased in value by 30% in one year?