We’ve been hearing that slogan a lot in adverts lately. But there isn’t actually a WOZ tax, is there?
WOZ
Of course, we understand that, in order to attract customers to your product, it can be useful to use popular terms. www.eerlijkewoz.nl’s service offers you the opportunity to lodge an appeal against your WOZ valuation free of charge. It is free because, if your appeal is successful, the local authority must reimburse you for the costs of the appeal procedure.
WOZ stands for ‘Valuation of Immovable Property’. As mentioned, it is therefore not a tax. However, it does have tax implications. This is because the value determined on the basis of the WOZ forms the basis for the Property Tax (OZB) levied by the local authority and the water system levy levied by the water boards.
Objection
Any objection to the WOZ valuation notice must be lodged with the local authority. This can (or must) often be done using a (digital) form. The local authority must have received the objection within 6 weeks of the date of the valuation notice. Many local authorities have now issued their WOZ decisions or will do so shortly. It is no coincidence that we are currently seeing the advertising slogan “Fair WOZ tax” so frequently.
Other taxes
Www.eerlijkwoz.nl states that lodging an objection results in an average saving of €308. However, the saving could be considerably higher, as the WOZ value is used for more taxes than those mentioned above. For example, the WOZ value forms the basis for the additional tax liability for the private use of a property under income tax and is the mandatory value for properties under Box 3 (income from savings and investments). Its significance in Box 3 has increased, as from 2023 the so-called vacancy value ratio for many properties will be set at 100% of the WOZ value. In the context of profit determination (income tax and corporation tax), the WOZ value is relevant to the base value, i.e. the value up to which property may be written off against profit.
Furthermore, the WOZ value for residential properties must also be used as a matter of course for the purposes of inheritance and gift tax. Incidentally, in the context of an inheritance, heirs can often request a new WOZ valuation from the local authority, against which an objection may be lodged.
Our advice
Examine your WOZ valuation notice(s) carefully. If you think the assessed value is too high, request the valuation report from the local authority and, if necessary, lodge an objection in good time. Bear in mind that the WOZ value is determined on the basis of the situation as at 1 January of the year preceding the year to which the notice relates. The WOZ value for 2023 is based on the reference date of 1 January 2022. It is important to note that the valuation system means the WOZ value is based on a comparison with similar properties sold around the reference date.