REAL PROPERTY MASS VALUATION SYSTEM IN SLOVENIA

Transcription

1 REAL PROPERTY MASS VALUATION SYSTEM IN SLOVENIA Surveying and Mapping Authority of the Republic of Slovenia Valuation Office Martin Smodiš CONTENT SHORTLY ABOUT CONSTITUTIONAL COURT DECISION ABOUT PROPERTY TAX THE MASS VALUATION SYSTEM IN SLOVENIA: MASS VALUATION PROCEDURES MASS VALUATION SYSTEM OUTCOMES USE AND USERS OF THE MASS VALUATION SYSTEM 1

2 Property Tax Act (2014) Tax object: all properties in the RER Tax payer: owner Tax base: generalized market value Tax rates: Average tax burden nearly doubled for residential properties Higher tax rate for the second house Higher for illegal buildings Average tax burden for business and industry stayed the same higher tax rates than for residential properties Tax rate for agricultural land and forest were quite low (0,15 % / 0,07 %) Some social correctives Tax revenue: State : Municipalities = 50 : 50 Municipalities: changing tax rates +/- 50 % Different Transparent Objective Homogenous 0 for Public Relations Constitutional Court (2014) Real Property Tax Act is to be abolished due: Different tax rates for residential/nonresidential housing, business and power plants Division of the tax revenue between state and municipalities in the ratio 50 : 50 (majority should be revenue of municipalities) Tax base is determined by unconstitutional solutions Some articles of Real Property Mass Valuation Act are inconsistent with the Constitution when they concern mass valuation for tax purposes: There is not enough legal certainty (Valuation models are determined by the Governmental Decree). Essential elements of the system should not be determined by sub laws. Possibility of the owner to argue and influence the value is limited and thou legally hollow 2

3 Mass Valuation System Development : System Development : System Implementation Sales Price Register Real Estate Register Valuation Models design and Calibration Valuation Models Register 2010 / 2012: System Establishment Notification Complains PROPERTY MARKET VALUE data flow Bad quality of property sales, unavailable for public 2007 Sales Price Register good quality of sales, available for public 2008 Real Property Registration Project Real Property field collection project 2012 Complete land cadastre, incomplete building cadastre Incomplete property data for modelling 2008 Real Property Register complete property data and information 2011/2012 Property Values notification + enforcement No market values 6 3

4 COSTS (developement and implementation) M FOR ESTABLISCHING THE REAL PROPERTY DATABASE (connecting the existing public database, huge real property data capturing project) 2. 1,5 M FOR DEVELOPING MASS VALUATION SYSTEM 3. 1,5 M FOR FINAL DESIGNING THE MASS VALUATION SYSTEM AND FOR 2 YEARS WORKING OF VALUATION OFFICE (additional data, development issues, softweare, hardweare and salaries) 4. 2,8 M FOR NOTIFICATION PROJECT AS FINAL TASK OF INTRODUCING THE SYSTEM ALL TOGETHER 16,8 M ( ) 7 Mass Valuation Procedures 4

5 General Valuation Process Discussion with municipalities Public discussion DRAFT MODELS DRAFT MODELS Pilot calculation of the value VALUE MODELS Model tabels, zones, point tabels Function discretization Model quality control e, k, COD, PRD, Model calibration Parameter values of function zoning and leveling Sales register ETN Iterative modeling process inspection and control Checked sales Real estate data from cadastre Time price adjustment definition of relational definition of the tables mathematical model 9 Equation Market areas Value zones Value levels Relationship table and value table Points tables 5

6 Valuation IT/IM System Real Property Register Assesses Value Sales Price Register Improvement and analysing Internal General Valuation GIS System Valuation Models Register 11 Real Estate Register Land Register Real Estate Market Register Land Cadastre Land Cadastre Census of Buildings REAL ESTATE REGISTER Population Register Slovenian Business Register Municipalities Data MoAF Data (agriculture & forest) Value Assessment (GMV) Questionnaires Buildings data and information capturing project (2007) Data collection with geodetic techniques 12 6

7 Mass Real Estate Valuation Unit Group of Properties (21) Property (6,1 million) Parcel (5,3 million) PROPERTY UNIT Building/Part (1,8 million) VALUATION MODEL Parcel or part of the parcel Building/Part of building VALUE UNIT Mass Real Estate Valuation Unit Definition 1 PROPERTY: THE SAME OVNER OF HOUSE, GARAGE AND THE FACTORY ON ONE PARCEL 1st VALUE UNIT HOUSE + PART OF PARCEL => 2nd VALUE UNIT GARAGE 3rd VALUE UNIT FACTORY + PART OF PARCEL 4th VALUE UNIT REST OF THE PARCEL PROPERTY UNITS: HOUSE, GARAGE, FACTORY AND PARCEL 14 7

8 Mass Real Estate Value Calculation VALUATION MODELS SPECIFICATION AND CALIBRATION (21 MODELS) Valuation Model Database Real Property Database MASS VALUATION OF ALL PROPETRIES IN THE PROPERTY REGISTER Mass Calculation Softweare REAL PROPERTY REGISTER (6,1 M PROPERTIES) 15 Mass Valuation System Figures (1) SALES Contracts per year RESIDENTIAL RENT active Contracts / year COMMERCIAL RENT active Contracts / year 16 8

9 Sales comparison approach Valuation model for apartments Valuation model for family houses Valuation model for garages Valuation model for business premises Valuation model for offices Valuation model for land for the construction Valuation model for built land Valuation model for agricultural land Valuation model for forest land Income approach Valuation model for power plants Valuation model for mines Valuation model for marinas and ports Valuation model for business premises Valuation model for gas station Cost approach Valuation model for industry Valuation model for heavy industry Valuation model for vineyard cottages Valuation model for farm buildings Valuation model for public buildings Valuation model for other buildings Valuation model for special properties Mass Valuation System Figures (2) Size 21 Valuation models VARIABLES Age Location Special circumstances Quality Mass Valuation System Figures (3) 18 9

10 Mass Valuation System Figures (4) VALUATION OFFICE: Responsibilities (20 employees): Sales data collection and improvement Property market analayses / Property market reports Valuation Models design and Calibration Databases: Sales Price Register Valuation Models Register CAMA Mass Calculations Compulsory Acquisition Methods Valuation infrastructure maintance costs Salaries: /year Average annual development & maintanance: /year Properties: 6,5 millions Value Units: 7,8 millions MULTIPURPOSE MASS VALUATION SYSTEM OUTCOMES i) SALES PRICE REGISTER RAW DATA ii) SALES PRICE REGISTER IMPROVED DATA iii) VALUATION MODELS REGISTER iv) VALUATION MODELS REGISTER - N P v) REAL ESTATE REGISTER vi) COMPULSORY ACQUISITION AND COMPENSATION USE FOR PUBLIC PURPOSES: - BANK OF SLOVENIA - STATISTICAL OFFICE - MINISTRY OF SOCIAL AFFAIRS - COURTS - COMPULSORY ACQUISITION (on the way) - CITIZENS - TAXES??? COMERCIAL USE: - PRIVATE VALUATORS (APPRAISER) - BANKS (COMMERCIAL) - INVESTORS - REAL ESTATE AGENCIES 10

11 Mass Valuation System Outcomes 1. Sales Price Register raw data 2. Sales Price Register improved data 3. Valuation Models Register 4. Real Property Register 5. Methods for Compulsory Acquisition of Real Property 21 Sales Price Register raw data (1) General Sales data free of charge Users: - citizens - media 22 11

12 Sales Price Register raw data (2) Detailed Sales data chargeable Users: - private appraissers - commercial banks - investors Sales Price Register improved data Detailed and manual investigation of each Sales contract Users: 1. National Bank of Slovenia calculation of price indexes monitoring of the commercial banks: mortgages & credit risks 2. Statistical Office calculation of price indexes 3. Property Market Reports commercial banks Investors private appraisers media 4. Valuation Models 24 12

13 Valuation Models Register Free of charge; value areas, value zones, value tables, value indexes, description of the models,. Users: - private appraisers - investors Real Estate Register Free of charge; property data, values Users: 1. Social Affairs 2. Courts 3. Taxation???? 26 13

14 Methods for Compulsory Acquisition of the Real Property New Law (2016) PROBLEM SOLUTION Value Range of estimated values for the same property Valuation Knowledge Users: 1. Compulsory Acquisition State infrastructure Local infrastructure 2. State and local owned real property managemant Investor Valuator MV System (SMA) Detailed data on the real property Negotiations with property owner Individual assessment PROPERTY SPECIAL CIRCUMSTANCES Valuation and compensation determination methodology INDIVIDUAL VALUATION REAL PROPERTY COMPULSORY ACQUISITION AND COMPENSATION ACT (May 2016) PROPERTY MASS VALUATION REAL ESTATE REGISTER DATA Mass valuation methods MASS VALUATION MODELS REAL PROPERTY MASS APPRAISAL ACT Use of the Multipurpose Mass Valuation System Initial Design Housing Policy Social Policy Multipurpose mass valuation system Compulsory Acquisition and Compensation Tax Policy?? 14

15 THANK YOU! 15