Is Property Tax Payable in Urban Transformation?
Buildings that are likely to collapse or be severely damaged in the event of a natural disaster are called risky structures. These buildings, which are given risky construction certificate as a result of technical examinations, are demolished. There are some special practices regarding taxes and other mandatory payments for buildings that can be demolished and rebuilt within the framework of urban transformation.
Is There Real Estate Tax Exemption in Urban Transformation?
There is no property tax exemption for the building demolished within the scope of urban transformation. However, real estate owners have been exempted from some compulsory expenses. According to article 7 of the Law on Transformation of Areas at Disaster Risk, the owners of real estate whose houses were demolished within the scope of urban transformation; There is no obligation to pay notary fee, stamp duty, inheritance and transfer tax, revolving fund fee, fees charged by municipalities, and bank and insurance transactions tax.
Do Home Owners Have to Pay Property Tax?
People whose houses are destroyed must continue to pay property taxes. However, the price they will pay varies depending on the type of property tax. According to the Real Estate Tax Law No. 1319, there are two types of real estate tax, building tax and land tax.
Before the buildings are demolished within the scope of urban transformation, real estate owners pay property tax in the form of building tax. After the risky structure is demolished, they have to pay the property tax in the form of land tax in the process until it is rebuilt.
Building tax and land tax calculations are made differently from each other. For this reason, it is necessary to inform the municipality about the changing nature of the real estate. Real estate owners have a share of the land in proportion to the flat they own. Land tax, that is, property tax, must be given at the rate of the share in the land. The amount of property tax to be paid is determined by the municipality of the region where the property is located.
