A new model for evaluating homes in rural areas could lead to lower tax burdens, according to a press release from the Ministry of Taxation. Around 13,000 more properties in the country’s rural areas will now be assessed and taxed as agriculture under the government’s new plan. This initiative has received support from both agricultural circles and green organizations but still lacks approval from the Danish Parliament. The Minister of Taxation hopes for an agreement on the final model after the summer holidays.
With the addition of the extra properties, the total number of natural properties taxed as agriculture will reach 128,000. The purpose of the new model is for properties with large natural areas, such as wetlands and fallow land, to be taxed under more favorable agricultural conditions. This approach also has a green dimension.
Previously, homeowners in rural areas have faced increased taxes as new property assessments moved them from the forest and agricultural category to regular residential property, resulting in higher taxation. Last year, 15,000 properties were affected by this change, but they were covered by a transitional arrangement allowing them to retain the original tax class until a sale. Later, the Assessment Agency adjusted their decision, resulting in 2,800 of these properties avoiding changes in their tax status.
For the approximately 13,000 properties that will be transferred to the forest and agriculture category, there will also be an opportunity to maintain the current tax status until a sale.