Valuable Housing Tax as a Supplement to Property Tax

Abstract

As it is known, taxes are one of the final results of the sovereign powers of the states. It is an undeniable fact that taxes, which can be considered as an important source of income in the financing of public expenditures, create a burden on taxpayers. States can make changes in tax rates by using their taxation authority; They may even impose new taxes. The important thing here is to increase the tax burden of taxpayers in proportion to their income.

A number of new taxes have come to the fore with the “Digital Service Tax Law and the Law on Making Amendments to Some Laws and Decree Law No. 375” published in the Official Gazette No. 7194. One of these taxes is the valuable housing tax. Valuable housing tax is regulated between the 42nd and 49th articles of the "Property Tax" Law. Valuable housing tax (VHT) is a tax that is subject to residential properties within the borders of Turkey with a building tax value or the value determined by the General Directorate of Land Registry and Cadastre, with a value of 5 million Turkish lira or more. It is important to examine the VHT and to reveal the principles and procedures. In the study, the procedures and principles regarding VHT were examined and some problems in the current practice were identified. Finally, solutions were suggested for the identified problems.