The WOZ notice should, by now, have arrived in your (digital) inbox. These days, this notice is often included with your local tax bill. From the date shown, you have 6 weeks to lodge an objection with the local authority.
Is the coronavirus crisis a reason for a lower WOZ value?
Significance
The WOZ value is, of course, important for local taxes (property tax) and for water board charges. It is clear that these charges will rise. This is due to the coronavirus crisis, but also to the care responsibilities that have been shifted onto the local authorities.
Housing
The WOZ value of properties is also relevant for inheritance and gift tax, as well as for the calculation of income tax on the tax-deductible owner-occupied home and income from savings and investments (Box 3).
At present, the housing market does not seem to be affected much by the coronavirus crisis. After all, there is a (growing) shortage of properties. In many regions, you have to outbid others to stand any chance of securing a home.
As such, the coronavirus crisis will not be used as a justification for reducing the WOZ value of residential properties.
Other property
The situation may be different for property other than residential properties. This is particularly true in sectors that have been hit hard by the coronavirus crisis, such as (this list is not exhaustive):
- the hospitality industry;
- concert halls, cinemas, entertainment venues, museums and theatres;
- saunas, casinos and gyms;
- swimming pools;
- sports canteens and sports clubs (including stadiums);
- libraries;
- schools;
- retail shops;
- people in contact-based professions (hairdressers, beauticians).
As far as offices are concerned, the question is what the consequences will be now that employers and employees have become familiar with the phenomenon of working from home on a massive scale.
Reference date
The reference date for the 2021 WOZ value is 1 January 2020. At that time, the coronavirus crisis had not yet had any impact on the property market. However, account must be taken of any change in value resulting from exceptional circumstances, which on 1 January 2021 are under discussion. The coronavirus crisis is one such exceptional circumstance.
The next question, of course, is to what extent the WOZ value is affected by the coronavirus crisis. The Valuation Guide estimates the impact to be very minor. This is because one must consider the impact caused by a limited period of closure (set against the property’s lifespan).
(Pro forma) objection
It certainly seems worth enquiring with the local authority to what extent the impact of the coronavirus crisis has been taken into account. The valuation guide states that the local authority must provide evidence of how these exceptional circumstances have been factored into the established WOZ value.
Of course, you should then safeguard your formal rights by submitting a (pro forma) objection in good time. Without the option of taking the matter to court, the local authority will generally not be prepared to reduce the WOZ value.