TAX LOSS DUE TO THE DIFFERENT TAX VALUE AND MARKET VALUE IN THE PROPERTY TAX

Since the Real Estate Tax Law has been accepted in our country, there have been various problems at the point of tax collection. In the first years, the authority to collect taxes was under the central administration, while in the following years this authority was transferred to the municipalities. While this tax, which has been collected by the municipalities since 1986, is subject to the principle of declaration, the declaration system has been changed in 2002 and the notification system has been introduced. Unfortunately, the value of the immovable properties subject to real estate tax by the Municipalities cannot be determined correctly. Thus, there are serious differences between the tax value of the real estate and the market value. This situation causes significant tax losses during the transfer or sale of immovables. In this study, various policy suggestions have been presented in order to eliminate the tax losses arising from the imperfections experienced in the taxation regime of the immovable properties subject to real estate tax.