Every year, the local authority sets the WOZ value of your property. WOZ stands for ‘Waardering Onroerende Zaken’ (Property Valuation). Based on that value, the local authority determines the amount of property tax (Property tax) you owe. The WOZ value is also used by other authorities, including the Tax and Customs Administration.
WOZ exemptions
The WOZ provides for a number of exemptions. The WOZ exemptions most relevant to business owners are:
- agricultural land exemption;
- equipment exemption.
You can find the other WOZ exemptions in the Implementing Regulations for Exempt Properties.
Agricultural Land Exemption
This exemption applies to:
- arable land (not the ground beneath buildings or structures);
- which is operated on a commercial basis;
- for the purposes of agriculture or forestry.
According to the North Netherlands District Court The agricultural land exemption may also apply insofar as the land is used for agricultural activities. The case in question concerns grassland situated in the municipality of Tytjerkstradeel. A horse breeding farm and boarding facility is operated on this land. According to the Court, between 10% and 15% of this activity qualifies as an agricultural activity. Consequently, 10 to 15% of the value of the grassland plots fell under the agricultural land exemption.
The Supreme Court had already decided in 2014 that agriculture also includes grassland farming and livestock farming. And that the term ‘livestock farming’ is not limited to the rearing of livestock for consumption. The rearing of animals, such as horses, with the intention of trading them, also qualifies as livestock farming.
Exemption for tools
Of all the WOZ exemptions, the exemption for equipment receives the most attention in case law. A piece of equipment must be capable of being separated from the immovable property. This must be possible without the immovable property sustaining significant damage. Naturally, the equipment must not, in itself, be regarded as immovable property.