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11024
Property taxes in 2 out of 3 municipalities
statistikk
2008-08-01T10:00:00.000Z
Public sector;Public sector
en
eiendomsskatt, Property tax, municipal tax, tax rate, basic deduction, municipal revenue, operational accountsLocal government finances , KOSTRA , Tax accounts , Public sector
false

Property tax2007

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Property taxes in 2 out of 3 municipalities

Property tax was as a source of revenue for 272 municipalities in 2007. Property tax contributed to 2.3 per cent of the municipalities’ total gross operating revenues in 2007, compared to 2.1 per cent in 2006.

The municipalities had total revenues of NOK 5.6 billion from property tax in 2007, compared to NOK 4.9 billion in 2006.

In 2007, 137 municipalities imposed property tax on mills and factories, while 80 municipalities chose to register property tax in both the areas used for mills and factories and in areas build in a townish manner. 55 municipalities’ registered property tax in the municipality as a whole. There were thus 135 municipalities that had property tax on housing. 139 municipalities responded that they did not have property tax in 2007, while 20 others gave no response at all.

Property tax

Property tax is a municipality tax that each individual municipality drafts in accordance to the property tax law of June 1975 no. 29 (‘ eigedomsskattelova ’). According to the law, it is the municipal council that decides whether to impose property taxes in the municipality. The municipal council can decide to impose property taxes in areas with mills and factories, areas build in a townish manner or in both of these areas. The property tax law (‘ eigedomsskattelova ’) has with effect from 2007 been changed such that the municipalities’ have the option to impose property tax in the whole municipality.

The municipalities’ revenue from property tax

The municipalities’ revenues from property tax increased by approximately NOK 680 million from 2006 to 2007. In total, property tax accounted for 2.3 per cent of the gross operating revenues of all municipalities. Of this, 61.4 per cent came from property taxes imposed on the use of mills and factories. Property tax from mills and factories was NOK 3.4 billion while property tax from other real estate was at NOK 2.2 billion.

Revenues from property taxes are on average NOK 20.7 million for each of the 272 municipalities that had such taxes. On average, the owner of a house measuring 120 square meters located close to the municipality’s centre pays NOK 1990 worth of property tax. There are significant differences in how much revenue municipalities acquire from property tax. It also varies whether a municipality acquires the most revenues from property taxes charged on use of mills and factories, or from other permanent property.

The general tax rates, differentiated tax rates, basic deduction and exemption for new houses

In 2007 the average tax rate was 6.1 per every thousand. The general tax rate is set to a minimum of 2 per every thousand and a maximum of 7 per every thousand. The municipalities can determine the level of tax rate payable themselves. 22 municipalities have chosen to have a differentiated tax rate for residential homes and vacation properties. 60 municipalities have a basic tax deduction for residential homes and vacation properties, while 68 municipalities exempt new houses from property taxation.

About the statistics

KOSTRA data for property tax are reported through file-extracts from the municipal accounts and questionnaire 33: “Property tax in the municipalities”. From the year 2007, property tax is being registered under two types, 874 (‘use of mills and factories’) and 875 (‘other real estate’). Before 2007, all property taxes was registered under type 874 (’property tax’).

Questionnaire 33 “Property tax in the municipalities” has been answered for the first time by the municipalities in 2008 (for accounting year 2007). In the questionnaire, the municipalities report among other things whether they impose property tax, the general tax rate, basic tax deduction and property tax charged on a home equivalent to 120 square meters located in the city centre.

Out of 431 municipalities, 430 municipalities hare reported their accounts and 411 have answered questionnaire 33. Several of the municipalities have left unanswered 2 questions: (1) Which year did the last general assessment take effect? and (2) Does the municipality have property tax exemption for new houses? The response rates are low for these questions.

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