Ministry launches investigation following exorbitant property tax hikes

The new valuation rates determined for the property tax period covering 2026-2029 were announced on June 30. The increase rates applied in major cities such as Istanbul, Ankara, and Izmir have drawn the ire of many property owners. In some regions, increases in property values of up to 1400% were identified.

MINISTRY TAKES ACTION

It has been learned that a large number of citizens have applied to the judiciary due to the sudden increase in the tax burden. Following the influx of lawsuits, the Ministry of Treasury and Finance has stepped in. According to information obtained, the justifications for the high-rate increases and whether they are proportionate are being examined in detail by official institutions.

LEGAL REGULATION ON THE TABLE

While judicial processes are ongoing, it has been reported that the Ministry of Finance is preparing a new legal regulation on the matter. Experts, recalling that an "upper limit" application was introduced following a similar crisis in the past, stated that this step could be brought back to the agenda.

In 2017, when property values in some regions increased by up to 3000%, it caused a major public outcry, and a rule was introduced stating that "it cannot exceed 50% of the rate from four years ago." Following this regulation, most of the lawsuits filed became void.

Appraisal commissions, which have a decisive role in property tax calculation, determine the square meter unit value of plots and land every four years. The commissions meet under the chairmanship of the provincial treasurer in provinces, and the district finance officer or tax office manager in districts.

The committee, consisting of two civil servants and two elected members, is responsible for determining the values that form the basis of the tax. The duties of the appraisal commissions include "making the tax base and wealth appraisals requested by authorized authorities" and "determining the values contained in tax laws."

However, the commissions do not have the authority to examine the "reasons for appraisal." They are only obligated to warn the relevant tax office in writing if erroneous transactions are detected.

News Source: 12punto