Using LADM and BIM for property and tourist taxation in the municipality of Bar, Montenegro

Abstract

Property valuation and taxation processes are of great importance, since revenues from taxes can be allocated to other areas of public interest thus improving the quality of life for all citizens. Two types of taxes are related to buildings and building units in Montenegro: property tax that is paid for all properties and tourist tax that is paid for properties used for tourism. Montenegro is a coastal country with rapid urbanization and developed tourism, so it is important to have well organized cadastral and tax administration records in order to perform correct tax calculation. Since the newly proposed LADM Valuation Information model is planned to be the part of the second edition of ISO 19152 Land Administration Domain Model (LADM), it is considered in the development of the country profile for valuation and taxation for Montenegro. The resulted model is presented in the paper. In addition to data organization, the procedures for determining the value of the property and tax value are also important and should be implemented according to the national regulation. In the paper, the formulas for calculation the tax values are presented. Appropriate attributes and classes that ensure keeping necessary data are added to the model. This model shows that LADM Valuation Information model can be used also for a very specific framework of legislation in which special kinds of property taxes can be found. The tax calculation in practice is not always correct due to lack of data. The possibility of using BIM model for new buildings in tax calculation, in order to overcome the mentioned problem, is analyzed. Data such as the area of the building and the quality of the building (building construction, building facade, windows, number of rooms, installations, number of bathrooms, etc.) can be directly loaded into tax administration database from the appropriate BIM model thus making the tax collection system more equitable and correct. In the paper, the mapping of appropriate BIM entities to valuation code lists are presented. In order to prove the benefits that such solution brings, an analysis of the cost-effectiveness of using BIM in the valuation and taxation process is carried out and presented.