Introduction
Property tax is one of the primary financing tools for local administrations, serving as a cost-based mechanism that supports urbanization, infrastructure development, and the efficient allocation of public resources. The unit square meter values of land, which serve as the basis for calculating this tax, vary depending on the economic and physical characteristics of the location of the immovable property. This variation necessitates periodic re-evaluation.
These values, determined by appraisal commissions, constitute the main component of the tax base and indirectly determine the property tax amounts for millions of citizens. The statutory requirement that the values for the 2026–2029 period be finalized by June 30, 2025, highlights the strategic importance of the matter for both the administration and individual taxpayers.
This article examines the legal procedures followed in determining unit land values, the structure, authority, and decision-making processes of appraisal commissions, and the development of the individual right to litigate, especially in light of the Constitutional Court’s 2012 decision. Furthermore, the article analyzes judicial review through key concepts such as annulment of decisions, partial annulment, and “regions differing in value,” supported by Council of State jurisprudence.
- Legal Framework: The Legal Infrastructure of Property Tax Valuation
1.1. Primary Legislation: Provisions of the Property Tax Law and Tax Procedure Law
The principles for determining the taxable value of land and plots are regulated under the Property Tax Law numbered 1319 (“PTL”) and the Tax Procedure Law numbered 213 (“TPL”). Article 29 of the PTL stipulates that the property tax value for land and plots shall be calculated based on the minimum unit square meter values determined by appraisal commissions. These values are subject to annual increases equal to half of the previous year’s revaluation rate.
The President is authorized to reduce this increase to zero or raise it up to the full revaluation rate. This authority can also be applied with different rates across municipal groups. Article 31 of the PTL states that market, cost, rental, or production values shall be considered in valuation, and the detailed procedures shall be regulated by regulation.
Article 72 of the TPL details the formation and duties of appraisal commissions. Additionally, Article 26 of the Regulation on the Appraisal of Tax Values for Property Tax Base outlines the criteria to be considered in valuations. These include zoning status, access to infrastructure services, street conditions, and topography.
1.2. Composition and Jurisdiction of Appraisal Commissions
The commissions are composed of representatives from the municipality, tax office, land registry, chamber of commerce, and local neighborhood authorities. In metropolitan municipalities, decisions of local commissions are subject to review by central commissions. If decisions are not approved, the objection process is initiated.
1.3. Valuation Process and Implementation Timeline
Valuation procedures are carried out every four years. The year 2025 marks the determination of values for the 2026–2029 period. Decisions must be announced no later than June 30, 2025, and posted at municipalities and local administrative offices.
- Judicial Review and the Evolution of Individual Right to Litigate
2.1. Expanded Judicial Access Through Constitutional Court Ruling
The Constitutional Court, with its decision dated 31.05.2012 (E.2011/38, K.2012/89), paved the way for individual taxpayers to directly challenge appraisal commission decisions in court. This marked a turning point in terms of access to justice and the rule of law.
2.2. Time Limits, Procedures, and Grounds for Annulment
The standard litigation period is 30 days from the notification date. However, for decisions announced by public notice, the starting point is the date of awareness. The Council of State accepts that cases may be filed until the end of the decision year.
Grounds for annulment include excessive valuation, irregular commission composition, lack of reasoning, noncompliance with legislation, and reliance on incorrect data.
- Judicial Process and the Role of Expert Reports
The principle of “ex officio review” governs administrative litigation. Courts assess the legality of the decision using expert reports. These reports are based on comparable properties, market conditions, and physical attributes.
If the court finds the expert opinion sufficient, it may rule accordingly. Therefore, it is essential that taxpayers submitting challenges provide technically substantiated and documented defenses.
- Judicial Review in Light of Council of State Jurisprudence
4.1. Partial Annulment and the Principle of Severability
In its decision E.2023/1, K.2023/3, the Tax Law Chambers Board of the Council of State affirmed that appraisal commission decisions can be “partially annulled,” meaning that only the unlawful portion may be overturned. This ensures more equitable judicial protection for taxpayers.
4.2. Interpretation of “Regions Differing in Value”
The Council of State interprets the concept of “regions differing in value” not only geographically but also based on economic and functional differences. Commissions must justify these differentiations with scientific data; otherwise, their decisions may be annulled.
- Precedential Impact and Collective Benefit of Court Decisions
Annulment decisions in a given region may have a binding effect on other taxpayers in similar circumstances. This highlights the strategic value of filing lawsuits and monitoring precedents. Collective action through professional associations or residential site administrations increases efficiency and reduces costs.
Conclusion and Assessment
The unit square meter values determined by appraisal commissions have a direct impact on taxpayers’ financial liabilities and are therefore subject to judicial review. As a result of the Constitutional Court’s decision expanding the right to litigate and the Council of State’s jurisprudence, taxpayers now have more effective means to contest these determinations.
The accuracy of expert reports, adequacy of justifications in decisions, and the judiciary’s application of the severability principle play a decisive role in the litigation process. Moreover, the widespread effect of precedents contributes not only to individual but also to collective tax justice.
In this context, ensuring that the property tax valuation process is transparent, lawful, and accountable serves the interests of both taxpayers and public administration. A fair and reviewable taxation system represents one of the most concrete reflections of the rule of law.
Best regards,
DT Law