Local level determination real estate tax, problems and solutions

This research aims at identification of the immovable property value subject to property tax or in other words property tax assessment, identification of the problems encountered and in this framework, investigation of the general problems and solutions to these problems in the process of immovable property valuation for taxation purposes. The research has been conducted according to the document review model. Particularly in 2002, the property tax legislation that was transferred to municipalities since January 1st, 1986 has brought a fundamental change of approach in the taxation system and the main responsibility of the taxation was put on municipalities, and the most significant problem in the implementation of the property tax within the context of this responsibility became the assessment, or put differently, the identification of the worth of the immovable to be hold ratable. Thus, in order to ensure the calculation and collection of the property tax based on real values, the issues of what property tax assessment in the property tax would be and what the method to identify property tax assessment would be emerge as important today, as they had been in the past. The literature has been reviewed in this perspective.The study is composed of five parts. The first part refers to the legal foundations of tax, the development of tax, the taxes collected on fortune, the tax provisions in the law and the constitutional law. The second part reviews the theoretical bases, specifications and importance of property tax. It includes different property tax implementations from past to this day, the implementations and changes in the Republican era, the declaration procedure, the minimum declaration procedure, the identification method of the value in the last change. The third part discusses the characteristics of property tax, the problems encountered related to value and valuation. In this respect, firstly, the concepts of value, valuation and land valuation are explained. The fourth part refers to information regarding establishment principles and works of municipalities and the structure and development of the tax property in certain foreign countries. The fifth part discusses the results of the property tax valuation and recommendations. The conclusions of the research are grouped in different headings such as the conclusions related to taxation system and property tax, conclusions related to the collection of property tax, conclusions related to property tax assessment, conclusions related to the system implemented. These recommendations stated in the study are grouped as those related to legislation and management and those that can increase the voluntary participation of the obligants to property tax. Key Words; Property Tax, Valuation, Municipalities, Tax, House Tax and Land Tax