Taxes: WOZ valuation models

Municipality of Meppel

Valuation models for calculating the WOZ value within Key2Valuation.

Last change on 15th of July 2024, at 11:50 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

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Begin date

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Contact information

[e-mail]

Responsible use

Goal and impact

The purpose of the applied algorithms is to calculate the market value of real estate in the context of the WOZ Act. The level of the WOZ value has various implications for stakeholders (citizens and companies). The most important impact lies in direct taxes, such as real estate tax. In addition, the level of the WOZ value has - directly or indirectly - an influence on other taxes, such as inheritance and gift tax, income tax and corporate tax.

Considerations

For efficient, correct and uniform calculation of the WOZ value, the use of valuation models is crucial. Without these models this is not possible.

Human intervention

The WOZ value is formally determined - on the basis of article 22 of the WOZ Act - by the tax inspector. In order to arrive at a valuation, the value is determined ex. article 17 of the WOZ Act. The WOZ value is determined de facto by the WOZ appraiser, who uses valuation models as much as possible. These models consist of a series of algorithms.

Risk management

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Legal basis

Valuation of Immovable Property Act (WOZ)

Links to legal bases

Wet waardering onroerende zaken: https://wetten.overheid.nl/BWBR0007119/

Operations

Data

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Technical design

Key2waarderen uses model-based comparison. Model-based comparison means that when substantiating an object, sold homes are searched for that most resemble the main building of the object to be compared. The following principles apply:

• The value of the main building is determined by comparing it with the main building of reference points;
• The value of the land and other components is determined by using model key figures;
• Valuers set the parameters of the model, such as usable area, year of construction, location, quality, maintenance, etc.

External provider

Centric Netherlands BV