Introducing a computerised market value-based mass appraisal system for real property taxation in Lithuania
ENToday, nobody has doubts about the need for real property taxation. The main issue in the analysis of the real property taxation is related to the correctness of taxation. In this case the correctness of taxation is understood as the right and grounded estimation of taxable value. World practice shows that the market value and the taxable value of real property computed on its base is the most easy to explain, its reflects the actual property value on the market, the benefit of this property also the receivable and expected income of sale. Assuming that the real property value is the best to reflect the benefit of property and is the best basis for property taxation the question arises how to make the fair calculation of this value, to assure its up-to-date importance and justification. At present, the market value is estimated in two ways: by single valuation and mass appraisal. In the course of property valuation for taxation in most cases the single valuation is not applied since it is too time and work consuming, and in some way expressing a subjective opinion of a valuer; difficult to apply for valuation of many property objects, also the costs are too high. Mass appraisal has some shortcomings and problems too. First, it does not allow the valuation of all individual characteristics of each property; the right value depends on the amount of information and the possibility to use this information. Nevertheless, these shortcomings are successfully address by making the best use of the improving real property information system, and the fact that the individual characteristics are not considered reduces the social consequence of the valuation and taxation.As to ensure the successful application of mass appraisal system it is very important to make an effective use of the real property information system and latest information technologies. In 1991, Lithuania started the restitution of real property and privatisation, and at present has the information on all registered real property in the computerised real property databanks. Centralised real property register databank has the comprehensive cadastre, register and property values information, which is constantly updated. The development of an automated real property information system started at the very beginning of the reform, and it provided a basis for the successful development of the computerised mass appraisal system based on market principles. In 2002-2003 the computerised mass appraisal system was developed which integrated the information systems of the cadastre, register and market database into a single system. It provided a possibility to evaluate the real property located in the entire territory of the country based on single principles, within the defined time and using the updated market data. It also allows the periodical re-evaluation of the property considering the market developments. The results were integrated with GIS what resulted in a possibility to have public access to the value maps and received mass appraisal results. Key words: mass valuation, Lithuania, land information system.
