Valuation problem in real estate tax and suggestions related to value determination

Real estate tax, which has a long history and widespread application fields, is constant and eligible wealth tax of which revenues and management has been generally left to local governments. The subject of the real estate tax is real assets. The basic measure in the tax assessment in real estate taxation is the value of real assets.Valuation and taxation of real assets are considered important issues in developed countries. Particularly, with the rapid urbanization, there are constant increases in the values of the real estate. However, these increases are not reflected in the real estate taxes. The problem here is to set the true and realistic value of the properties subjected to taxation. Even though, this problem is still experienced in developed countries, it is more frequent in developing countries.The problems faced in the process of the real estate valuation and the suggestion as solutions for these problems are the aims of this study. It is important to identify the problems and to propose some solutions for taxpayers and governors in Turkey which has not structured the system of real estate valuation.