The Danish government announced on Wednesday, that the scheduled new property assessments´ system is not ready yet

After the tax minister on Wednesday announced that the new property assessments will be postponed a year, the reactions have been many.

The minister, Karsten Lauritsen, acknowledges that the homeowners will have less time to prepare for the new property tax system which will be implemented January 1. 2021 – with the new delay of the property assessments, which will not be ready until the middle of 2020.

According to the director from Boligøkonomisk Videncenter ( Property economic knowledge center) Curt Liliegreen, the once that will take the hardest hit will be property projects since they do not have any assessment yet and we have already seen the projects loose their breath – so with the new delay, this is not expected to turn. According to the same source, these delays can, at worst, mean a reduction in property prices on upwards 10%.

According to the government, the new assessments will result in refunds of totally DKK 9 billion for 730.000 homeowners.

A delay like this costs the government 700 mio DKK. a year – which means a yearly tax cut for property owners of 700 mio DKK.

Property assessments have been a hot topic since the national audit criticized Skat ( tax authorities ) property assessments in 2013 – they had a lot of flaws. That led to a freeze of assessments from 2011 and 2012. And since then, the government have given a lot of promises of accurate property assessments for homeowners – they were projected to be ready in Q1 2019, then got postponed to Q2 2019 and now Q2 2020.

According to several Democratic politicians, this might not be the last time the assessments will be postponed.