The government is raising the threshold for high valuation to 14 million kroner to dampen the effects of the change, Stoltenberg said at a press conference. The updated housing model is fairer and more accurate, and better reflects the real value of homes than before, he added. The state received about half a billion kroner more than the Ministry of Finance had assumed from the updated housing model.
In 2021, the Storting decided that the valuation of homes should be changed because the old system had obvious flaws, including undervaluing exclusive properties. The Tax Administration uses the model to calculate market value of homes, which affects wealth tax levels. When the model was changed last year, it triggered a tax bill of tens of thousands of kroner for some homeowners.
I imagine many are very pleased with this news. There are several who have been worried about whether the tax would double or more.
The Progress Party says the adjustment to 14 million kroner is an improvement but not good enough, according to tax policy spokesperson Martin Virkesdal Jonsterhaug. The Conservative Party welcomes the change but believes the threshold should have been set at 20 million kroner. The Homeowners' Association believes the threshold seems somewhat arbitrarily chosen and should have been 15 or 20 million kroner.
The government will present the change in the revised national budget in early summer. SV and Rødt have already signaled they want different measures from the government. SV representative Marthe Hamme criticized the move, saying the government is cutting wealth tax for those with the most expensive homes rather than prioritizing welfare.
If you have inherited a cottage on an attractive plot, which you didn't think about at the time, you already pay a fair amount in property tax.
The Labour Party government will not propose changing the valuation model for holiday homes, Stoltenberg confirmed. Work on a new model for holiday homes was initiated by the Conservative Party and Progress Party in 2016 after a tax settlement in the Storting. In 2021, the Solberg government sent a proposal for a new model for holiday homes for consultation, aiming for introduction in 2024. The Tax Commission is well underway with its work, according to Stoltenberg. The Norwegian Holiday Home Association was concerned about increased taxes if a new model were introduced. According to NRK, Knut Fougner, a board member of the Hvaler holiday home association, described many members as pleased with the news, noting that several had worried about tax doubling. He also said that those who inherited cottages on attractive plots already pay significant property tax, and advised keeping a cool head if the issue becomes relevant again.
It is important to keep a cool head if it becomes relevant again. We'll see how it ends up.