Property tax - Housing associations and limited liability housing companies

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As owner of the property, the housing association or housing company will be liable for the property tax and will receive a combined bill for the entire association/company.

The way in which the costs are distributed between the individual unit holders will depend on the articles of association and provisions of the housing association/housing company concerned, but the costs will normally be shared according to a distribution key based on the ratio between the values in the housing units.

Who can appeal against a property tax decision

The board of directors and/or business manager who represents the housing association/housing company will generally be entitled to appeal against a property tax decision. In practice, the right to appeal will typically fall to the board of directors or business manager/lawyer (through power of attorney).

As an appeal against property tax may affect the individual unit holder's wealth tax assessment, the Directorate of Taxes believes that the housing association/housing company should not be entitled to appeal against either the property value of individual housing units or housing information concerning an individual housing unit, unless the unit holders concerned consent to the appeal or otherwise give their general consent (e.g. through the housing company's articles of association).

Individual unit holders can only appeal against the capital value of their own housing unit. This applies to the property value and background information linked to the housing unit, e.g. year of construction and primary area.

Appeals against property tax decisions may be submitted to the Norwegian Tax Administration on the following grounds:

  • Specified primary area, year of construction, location or housing type (housing information) is incorrect for one or more housing units, or
  • the housing information as such is correct, but the capital value of the housing unit(s) exceeds the established maximum limits in relation to actual market value. The property value is only the Norwegian Tax Administration's estimate of the market value and is determined using statistics from Statistics Norway (SSB) based on housing information which has been provided.

The housing association/housing company may request that the capital value be reduced if it is able to document (through an estimate, valuation/observable sales value) that the capital value for one or more housing units exceeds the specified maximum limits. In connection with this, consideration must generally be given to the maximum limit that applied during the income year to which the property value is linked.

Example:

For property tax assessed in 2017, the property value is obtained from the tax assessment for the 2015 income year. For the 2015 income year, the maximum limits for capital value are set to 30% of the documented sales value for primary dwellings, and 84% of the documented sales value for secondary dwellings.

The documentation must be enclosed with the appeal. Individual unit holders may only appeal against the capital value of their own housing unit. This applies to the property value and background information linked to the housing unit, e.g. year of construction and primary area.

Capital value (tax value) is not the same as property value.

The capital value of your housing unit is always less than the property value. The property value is an expression of a calculated market value. The capital value is affected by whether the property is your primary or secondary dwelling, whereas the property value is independent of this. If the property is your primary dwelling, the property value will typically be four times higher than the tax value. This will of course not apply in cases where the capital value has been reduced during one of the past five years due to a documented market value.

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