Extended use of property tax in the municipalities
Property tax was a source of revenue for 324 municipalities in 2012. The municipalities had total revenues of NOK 8.1 billion from property tax in 2012, which corresponds to 2.4 per cent of the municipalities’ total gross operating revenues.
|2011 - 2012||2009 - 2012|
|Municipalities with property tax||324||2.5||8.4|
|Municipalities with property tax on mills and factories||111||-4.3||-16.5|
|Municipalities with property tax on both mills and factories and areas built in||14||-44.0||-74.1|
|Municipalities with property tax in the municipalities as a whole||174||6.7||55.4|
|Property tax from mills and factories (NOK 1 000)||8 086 295||6.8||24.4|
|Property tax from other real estate (NOK 1 000)||4 642 879||6.5||.|
|Property tax from residential homes and vacation properties (NOK 1 000)||3 443 416||7.2||.|
|Property tax as a percentage of gross operating income||2.4||0.0||4.3|
The municipalities had total revenues of NOK 8.1 billion from property tax in 2012, compared to NOK 7.6 billion in 2011.
In 2012, 324 municipalities chose to collect property tax as a source of income compared to 316 municipalities in 2011. Of this, 128 municipalities imposed property tax on mills and factories, while 22 municipalities chose to collect property tax from the areas used for mills and factories as well as areas built with town-like features. A total of 174 municipalities chose to collect property tax in the municipality as a whole; an increase of 11 municipalities since 2011. There were thus 196 municipalities that had property tax on residential property compared to 188 in 2011. In total, 105 municipalities responded that they did not impose property tax in 2012.
Increased revenue from property tax
The municipalities’ income generated from property tax increased by about NOK 516 million from 2011 to 2012. Property tax accounted for 2.4 per cent of the total gross operating revenues. Income from property tax is divided into two categories; other real estate, and residential homes and vacation properties. In 2012, property tax from other real estate amounted to 57.4 per cent or about NOK 4.6 billion, whereas 42.6 per cent, or just about NOK 3,4 billion, was derived from residential homes and vacation properties.
Revenues from property tax are on average NOK 25 million for each of the 324 municipalities that had imposed the tax. On average, the owner of a house measuring 120 square metres located close to the municipality’s centre paid approximately NOK 2 850 in property tax in 2012, compared to about NOK 2 700 in 2011. There are significant differences in how much income municipalities generate from property tax. The variation arises from whether they generate the revenues from property taxes charged from other real estates or from residential homes and vacation properties.
General tax rates, differentiated tax rates, basic deductions and exemptions for new houses
In 2012, the average tax rate was 5.9 per thousand; the same as in 2011. The general tax rate is set to a minimum of 2 per thousand and a maximum of 7 per thousand. The municipalities can determine the level of tax rate payable themselves. A total of 70 municipalities have chosen to have a differentiated tax rate for residential homes and vacation properties. Ninety municipalities have a basic tax deduction for residential homes and vacation properties, while 73 municipalities exempt new houses from property taxation.