New Local Property Tax Rules

The rules regarding the valuation of properties for local property taxes (IMI) are being altered.

Any property owner thinking of requesting a new tax valuation of their property needs to calculate what the new taxable value would be before undertaking such a request. This is because the rules regarding such valuations have been changed with further alterations in the pipeline which could result in a nasty surprise.

The main changes to the IMI are that it is now possible for the local municipality or parish which receives the IMI to judicially challenge the new valuations obtained by the property owner and that it is proposed that some of the valuation criteria be altered. In particular the location of the property will have a far greater weighting in the overall valuation of the property. The location of the property is included in the comfort and quality factor of the valuation and previously the value of well located property would be increased by 5 percent. Under these proposals the value could be increased by 20 percent . As such for example  a property which is well positioned  in respect of exposure to the sun will be attributed a higher value as would a property with a nice view. To compensate for this properties in a poor location will benefit from a reduction of 10 percent previously 5 percent.

Within the comfort factor a higher taxable value was already attributed to detached houses, gated condominiums with access to a swimming pool  and properties located in areas of particular interest or beauty. These will remain unchanged.

The government is however only proposing to alter part of one of the 6 factors which are used to calculate the taxable value of a property and as such the valuations of many properties will remain unchanged. Certain well located properties will suffer significant increases. 

With this new valuation measure the government proposes to undertake a general revaluation of all the properties over the next few years.

IMI is calculated at between .3 to .46 of 1 percent of the taxable value of the property on an annual basis.

If you think your property is over valued we can prepare a quick study of the situation in order to check whether your property could benefit from requesting a new valuation. Revaluations of properties can be requested every three years.

Do you wonder if this will affect you? Contact us 

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