Text 32894, 63 rader
Skriven 2009-05-31 23:33:42 av Michiel van der Vlist (2:280/5555)
     Kommentar till en text av Dale Shipp (1:261/1466.0)
Ärende: Rental Tax
==================
Hello Dale,

On Saturday May 30 2009 23:04, you wrote to me:

 MVDV>> See Ward's message. He described it well enough.

 DS> So he did.  It sounds very much like what we have here except that it
 DS> is called a property tax, not an imputed rental.

Eh... wait a minute. I think you got it wrong.

We too have property tax. It is called "Omroerend zaak belasting" or "OZB" for
short. "Real estate tax" would be a reasonable translation. It applies to
owners of real estate and it is a local tax imposed by the municipality. The
value property is estimated on size, location and the market prices of similar
object in the area. You can challenge the estimate, your milage may vary.

The municipality is free to set the percentage for the tax. It is a major
source of income for them. So there are cheap and expensive places in The
Netherlands. The OZB is not incme related. They ony look at the real estate.

The "huurwaardeforfait" is an ICOME tax imposed by the central government. They
use the OZB estimate from the municipalities and assing a fictitious rent fro
that. That amount is added to your income for the calculation of income tax.

 DS> Is your income tax there progressive?  I.e. do higher income people
 DS> pay higher percentage on marginal income?

Yes, it is progressive. So the higher your income, the harder this
"huurwaardeforfait" hits.

 DS> Do you pay any other property tax -- or is this rental tax it?

In addition to the OZB and huurwaardeforfait there is a provincial tax on
water. Not the water that comes form the tax, but the water in the canals and
ditches. It is supposedly ised to keep my feet dry. i.e. the cost of keeping
the ground water level within aceptable limits.

Then there is waste removal tax. Related to the number of persons living in the
house.

I am sure there is more, but this is what comes to  mind.

 DS> What if you own a rental property and actually rent it to some third
 DS> party -- but not for the amount the government imputes the the rent
 DS> should be?  Do they still charge you tax on the imputed ammount, or
 DS> only on what you actually collect?

The "huurwardeforfait" only applies to house owners living in their own house.
When renting to a third party, it is the actual amount that is taxed.

 DS> There are legitimate reasons for charging less than full market value
 DS> rent -- e.g. to keep a good tenant in the property instead of having
 DS> to refurbish for a new and unknown renter.

Of course. But if you deviate too much from the market value, the difference
could be considered a gift. Subject to gift tax....


Cheers, Michiel

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