Property tax, 2014

The municipalities had total revenues of NOK 8.9 billion from property tax in 2013, compared to NOK 8.1 billion in 2012.

As per 2014, 341 municipalities have chosen to collect property tax as a source of income compared to 330 municipalities in 2013. Of this, 112 municipalities have imposed property tax on mills and factories, while 22 municipalities have chosen to collect property tax from the areas used for mills and factories as well as areas built with town-like features. A total of 199 municipalities have chosen to collect property tax in the municipality as a whole; an increase of 22 municipalities since 2013. There are thus 229 municipalities that have property tax on residential property compared to 205 in 2013. In total, 87 municipalities have responded that they are not imposing property tax in 2014.

Increased revenue from property tax

The municipalities’ income generated from property tax increased by about NOK 800 million from 2012 to 2013. Property tax accounted for 2.5 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 2013, property tax from other real estate amounted to 58.4 per cent or about NOK 5.2 billion, whereas 41.6 per cent, or just about NOK 3.7 billion, was derived from residential homes and holiday properties.

Revenues from property tax are NOK 27 million on average for each of the 330 municipalities that had imposed the tax in 2013. There are, however, 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 holiday properties.

General tax rates, differentiated tax rates, basic deductions and exemptions for new houses

In 2014, the average tax rate is 5.8 per thousand; approximately the same as in 2013. 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 86 municipalities have chosen to have a differentiated tax rate for residential homes and holiday properties. Ninety-three municipalities have a basic tax deduction for residential homes and holiday properties, while 81 municipalities exempt new houses from property taxation.