Determination of tax value in real estate tax

The purpose of this study is to examine the process of determining the value of real estate subject to real estate tax, to identify the current situation, and to develop recommendations for addressing the issues in this area. It is a well-established fact that the values forming the tax base of real estate tax do not reflect the actual market value of the properties. This study addresses how such real estate values are determined within the framework of the current system in Turkey, including the practices and interpretations of the administration as well as judicial decisions. In the continuation of the study, the process of determining the taxable value for real estate tax purposes in Germany, France, the United Kingdom, and the United States is examined. In all the countries analyzed, there are significant challenges faced by both taxpayers and local governments. For instance, in Germany, the real estate tax system was declared unconstitutional, resulting in a comprehensive reform process. In France, although a reform process has been initiated, it has been postponed twice. In the United Kingdom, there are criticisms concerning the unfair distribution of the tax burden, whereas in the United States, valuation limitations have further exacerbated these inequalities. This situation reveals that when valuation and taxation processes converge, the emergence of structural problems becomes inevitable. However, ensuring fairness in taxation and achieving effective tax outcomes necessitate the accurate determination of real estate value. Within this framework, the study offers a set of recommendations to resolve the identified problems.