Housing tax; Midterm paper
The housing tax is a municipality tax that is regulated by the law of household taxes. In 1975
the housing tax law was introduced in Norway. This tax gets introduced by each municipality,
and not the state. The municipality determines the tax rate, if there is going to be paid taxes,
how they are going to be settled and how it is going to be required. Some real estates are
always excused for the tax and some can be excused for special reasons. A total of 321
municipalities had housing tax in 2021, while 233 of them have taxes for the whole
municipality.
We choose to write about housing tax as it has been broadly discussed over the years, and
after some research it seems like that the majority are against it. Many claim that the tax is
not fair, as it creates a larger separation between the different income classes. We found
this tax to be quite interesting, and wanted to take a deeper dive into what the differences
are caused by. We will argue for and against the housing tax as it is today, and present what
we believe is a realistic alternative.
First of all, the housing tax as it is today, only takes the property’s market value into account
when calculating the tax.