The Ministry of Finance is reassessing the complicate zoning and location coefficients for urban real estate for rating purposes.
These figures are one of the elements used to fix IMI property rates, but are only being applied for new buildings.
The Association of Appraisers argues that the ratable value and hence rates bills for buildings should go up automatically.
The president of the Association, João Martins Martins do Vale, considers that the review of zoning and location coefficients should apply to all urban real estate, not just new buildings.
Martins do Vale says that an opportunity for the Ministry of Finance to promote fair taxation has skillfully been avoided as many buildings would qualify for rates reductions due to the fall in value of real estate across the country.
The Association points out that the current review of council rates zones will be reflected in the IMI rates charged only in 2016 and that it is possible for any owner to request a reassessment.
The problem with querying the original assessment it that the tax office decides whether it was wrong in the first place and is reluctant to disagree with its own valuation.
If the rates assessment remains unaltered despite a reassment excercise, the property owner is faced with the bill for the valuation.
The taxman wins in both scenarios. Updating only new buildings and not re-rating existing ones means many existing buildings are paying too high a rates bill; secondly, the re-assesment scheme puts people off applying as the property owner ends up with the bill when the tax office says it was right in the first place.
