Post by The March Hare on Mar 23, 2006 21:45:36 GMT 1
Time to pay Real Estate Tax
The real estate tax, which covers approximately 19 million owners of houses and land, is now payable as of the month of March.
The first instalment of the real estate tax for 2006 is payable during March, April and May while the second instalment will be paid in November. The “Contributed Share for Protection of Immovable Cultural Wealth”, which is 10 per cent of the Real Estate Tax, is also payable during the same periods.
Whatever you do, do not neglect the deadline for the first instalment even though it is the end of May. The tax on real estates is amended this year. Every four years, the value of the real estate subject to tax is reviewed and revised. The real estate tax was last established in 2002 and is now re-evaluated for 2006 and consecutive years. Therefore, it would be useful to learn the real estate tax you will be paying from the municipality concerned, in good time, even if you are not going to pay it at once.
The ratio of the Real Estate Tax was increased by 50 per cent for 2006 in order to provide financial resource for the municipalities. However, when this appeared in the press and there was great reaction from the public, the draft law on “Car Park Tax” and “50 per cent increase on Real Estate Tax” was withdrawn. Thus, the ratio of the real estate tax remained the same, and the car park tax was not levied…
Recently Purchased Real Estate
The liability for tax payment on real estate starts the year after the purchase is finalized (Law on Real Estate Tax, Articles 9 and 19). Therefore, the new owner will be paying the tax not on the year he has purchased but during the subsequent year. For example, the real estate tax on the property bought on the 27th of February, 2006, will be payable during 2007.
However, those purchasing real estate in 2006 have to submit a “Real Estate Statement” to the municipality concerned during the course of 2006.
If the real estate purchased has outstanding tax payments from previous years, the new owner may be asked to pay this. The new owner pays the tax and may demand reimbursement from the previous owner (Law on Real Estate Tax, Article 30/7).
Sellers of Real Estate
Since the liability of real estate tax of the purchase starts on the subsequent year, the seller pays the tax for the year the purchase is carried out. In such a case, if a house was sold in February, 2006, the seller has to pay the real estate tax for 2006. The buyer will start paying the tax starting with 2007.
It would be beneficial for sellers of real estates during or before 2006 to notify the municipalities concerned in writing.
The real estate tax, which covers approximately 19 million owners of houses and land, is now payable as of the month of March.
The first instalment of the real estate tax for 2006 is payable during March, April and May while the second instalment will be paid in November. The “Contributed Share for Protection of Immovable Cultural Wealth”, which is 10 per cent of the Real Estate Tax, is also payable during the same periods.
Whatever you do, do not neglect the deadline for the first instalment even though it is the end of May. The tax on real estates is amended this year. Every four years, the value of the real estate subject to tax is reviewed and revised. The real estate tax was last established in 2002 and is now re-evaluated for 2006 and consecutive years. Therefore, it would be useful to learn the real estate tax you will be paying from the municipality concerned, in good time, even if you are not going to pay it at once.
The ratio of the Real Estate Tax was increased by 50 per cent for 2006 in order to provide financial resource for the municipalities. However, when this appeared in the press and there was great reaction from the public, the draft law on “Car Park Tax” and “50 per cent increase on Real Estate Tax” was withdrawn. Thus, the ratio of the real estate tax remained the same, and the car park tax was not levied…
Recently Purchased Real Estate
The liability for tax payment on real estate starts the year after the purchase is finalized (Law on Real Estate Tax, Articles 9 and 19). Therefore, the new owner will be paying the tax not on the year he has purchased but during the subsequent year. For example, the real estate tax on the property bought on the 27th of February, 2006, will be payable during 2007.
However, those purchasing real estate in 2006 have to submit a “Real Estate Statement” to the municipality concerned during the course of 2006.
If the real estate purchased has outstanding tax payments from previous years, the new owner may be asked to pay this. The new owner pays the tax and may demand reimbursement from the previous owner (Law on Real Estate Tax, Article 30/7).
Sellers of Real Estate
Since the liability of real estate tax of the purchase starts on the subsequent year, the seller pays the tax for the year the purchase is carried out. In such a case, if a house was sold in February, 2006, the seller has to pay the real estate tax for 2006. The buyer will start paying the tax starting with 2007.
It would be beneficial for sellers of real estates during or before 2006 to notify the municipalities concerned in writing.
