DEVELOPING OF MASS APPRAISAL FOR PROPERTY TAX IN INDONESIA

Transcription

1 DEVELOPING OF MASS APPRAISAL FOR PROPERTY TAX IN INDONESIA by: Arridel Mindra, Adv. Dipl. Est. Mgmt, MSc. (Certified and Licence Appraiser) Directorate General of Taxation, Ministry of Finance, INDONESIA 16th AVA Congress, Bangkok, July 2010

2 The Republic of Indonesia 2 2

3 3 INDONESIA MACRO ECONOMIC INDICATORS Indicators * Economic Growth Inflation Rate Exchange Rate to USD 5.51% 5.40% 5.80% 6.40% 5.50% 5.30% 8,939 8,600 9,200 Interest Rate 7,36% 6,80% 6,50% 3

4 Revenue of Property Tax in Indonesia Year Property Tax Revenue Collected Nominal (Rp.000) Growth Achievement ,740,966,542 NA 115% ,206,036,181 38% 121% ,883,723,381 29% 133% ,156,008,909 16% 114% ,187,539, % 97% ,272,901, % 108% Average 17% 118% Resource: DGT, MoF Indonesia,

5 Management of Property Tax in Indonesia 5 Manage by Central Government c.q. DGT, MoF Management includes: Data Collection and Data Maintenance Valuation and Assessment Tax Bill issuance and distribute to tax payer Revenue Collection and Law Enforcement Objection and Appeal Service Information and Consultation Service 90 million parcel (land and building) tax object 65 million person/coorporate tax payer Revenue sharing between Central, Regional and Local govr. 5

6 Data Management System For Property Tax in Indonesia Property Tax data management system is developed early 1990 s called SISMIOP (Land and Building Tax Object Management Information System) by Computer Basis. Characteristics of SISMIOP Simplicity of Design and Operation Permanent Simultaneous automatic up date of information. Internal automatic of information. SISMIOP has been support by latest mapping technology that called Geographic Information System (GIS). SISMIOP has been support by Computer Assisted Valuation (CAV) for building valuation. 6

7 SISMIOP MODULAR DESIGN: BASIC DATA MANAGEMENT MODULE DATA COLLECTION DATA ENTRY VALIDATION MAP & FORMS MGMT DATA FILE MAINTENANCE TAX BILL PRODUCTION MODULE TAX BILL PRINTING RECEIPT PRINTING VALUATION & ASSESSMENT MODULE VALUATION ASSESSMENT VALUE & ASSESSMENT STATISTICS GENERATION INFORMATION RETRIEVAL MODULE SYSTEM ACCESS MANAGEMENT PROPERTY DATA FILE (NOP) MODIFICATION MONITORING TAX ROLL PRINTING BILLING STATISTIC PERFORMANCE MONITORING MODULE TAX PAYMENT MONITORING PAYMENT POINT MONITORING ENFORCEMENT MONITORING INFORMATION RETRIEVAL ONE STOP SERVICE MODULE TAX PAYERS PRESENTATIONS FILE PRESENTATIONS MONITORING ONE STOP SERVICE INFORMATION RETRIEVAL 7

8 Formula for Property Tax Calculation Tax base is Market Value of Land and Building Base Tax rate is flat 0.5% Taxable Value : 20% and 40% Urban and Rural Sector : the value < Rp 1 billion : 20% the value > Rp 1 billion : 40% Mining, Forestry and Plantation Sector : 40% Effective Tax rate are 0.1% and 0.2% Non Taxable Value is Rp cross the aboard Formula : Tax Bill equal to (Market Value - Non Taxable Value) x Effective Tax Rate (Market Value Rp ) x (0.1% or 0.2%) Determine the Market Value as tax base is important 8

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11 Cost Approach which land value define as a vacant land by comparison method Cost Approach which building value define by Depreciated Replacement Cost method 11

12 Mass Appraisal for Land Value Determine the Land Value by Mass Appraisal using the Land Value Zone (LVZ) System. LVZ System is zoned a group of parcel that have same average value. LVZ parcels of land are grouped by criteria of: Similarities of land use Availability of public facilities Accessibility Potential Land Development Values Every LVZ has an Average Indicated Value (AIV) that is determined by three stages: Firstly, land transaction data are collected for every LVZ Secondly, every land transaction data is analyzed to be indicated market value regarding time adjustment and kind of data (i.e. selling price, mortgage, and offering price) adjustment Thirdly, AIV of each LVZ is the mean of indicated market values (after adjustment) of land transaction data Land value (as LBT base) of each parcel of land in a LVZ is determined by it s AIV. 12

13 Land Zone Value Analysis for Mass Appraisal (data available) AA NIR: Rp Analysis:: Analysis

14 14 Land Zone Value Analysis for Mass Appraisal (no evidence available) AA NIR: Rp AB NIR: Rp AD NIR: Rp AC Analysis:: Analysis NIR: Rp

15 Land Value Zone Map Supported by GIS 15

16 Mass Appraisal for Building Value 16 Estimation of the building value is based on the Cost Method. CRN define by The Building Cost Tables (BCT). BCT is arranged by using quantity survey method for the building model, which represents a group of valued building. The building depreciation is design base on combination between effective age, CRN/m2 and building condition by survey. Process of building valuation is using computer assisted valuation (CAV) as a mass appraisal and individual appraisal for special construction. Computer Assisted Valuation (CAV) The CAV system is using Cost Approach base on mass valuation model. The CAV process needs categorization and standardization of LBT building objects. The CAV categorized two groups of building are standard and non-standard. The CAV is used to value the standard object that not fulfill those criteria : floor area of more than 1000 m2 or more than four stories or land area more than 10,000 m2. Sample of BCT for standard building refer to table below : 16

17 Building Cost Table (BCT) for Standard Building BCT OF MAIN (Rp/m 2 ) FLOOR AREA NUMBER OF FLOOR , , , , , , ,000 >= , , , , , , , , ,000 BCT OF MATERIAL (Rp/m2) 1. ROOF Concrete slab Rp. 93,000/m 2, Concrete roof tile Rp. 71,000/ m 2, Clay roof tile Rp. 45,000/ m 2, Corrugated eternite roof Rp. 22,000/ m 2, Corrugated zinc roof Rp. 15,000/ m 2, 2. WALL FINISHES Glass Rp. 122,000/ m 2, Aluminium Rp. 60,000/ m 2, Concrete Rp. 76,000/ m 2, Brick Rp. 57,000/ m 2, Timber Rp. 21,000/ m 2, Zinc Rp. 13,000/ m FLOOR FINISHES Marble Rp. 134,000/ m 2, Ceramics Rp. 59,000/ m 2, Terrazzo Rp. 52,000/ m 2, Cement floor tile Rp. 28,000/ m 2, 4. CEILING Acoustic Rp. 91,000/ m 2, Thin plywood Rp. 38,000/ m 2. 17

18 Building Cost Tables (BCT) for Non-Standard Building The BCT is designed for valuing non-standard buildings that have special characters for example commercial high-rise building. The BCT enables the updating of building values periodically through data entry of building costs into the system. The basic features of the BCT are: Logical procedure and process of valuation can traced back and updating; Accommodates to internal and external changes; Calculating building cost is achieved through actual staging of stories development and actual composition of building material. Buildings are classified into 16 categories of types and matched with 19 kind of facilities and equipments. For calculating value with cost approach, each building structure is divided into three components i.e. main structure, building material and building facilities. Samples of BCT refer to table below: 18

19 BCT MAIN S (RP/m 2 ) FLOOR. NUMBER BUILDING USAGE CODE 2/ , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,650 1,043,945 1,123, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,646 Etc. 19

20 20 INTEGRASI 20

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22 Appraisal Review for Property Tax in Indonesia is used Assessment Sales Ratio Analysis (ASR) (Standard Level of Assessment : 80% to 110%, refert to IAAO) 22

23 Challenging of Mass Appraisal System Development 23

24 24 Thanks for your attention 24