Where is the world of property valuation for taxation purposes going?

Abstract

PurposeThe paper's purpose is to review the growth of computer supported valuation models and the increased access via information technology to property data in the world of property taxation. The paper aims to stimulate debate on what the short/medium term future may hold. Is there room for both traditional valuation surveying skills and computer mass appraisal models in the enlightened property taxation world, where transparency and access to property data is expected?Design/methodology/approachThe paper compares and contrasts developments and trends in the use of automated valuation models (AVMs) across the world to assess property for local taxation purposes. It focuses in detail on three automated property taxation valuation systems of which the author has working knowledge and experience: Valuation Office Agency – Council Tax (Dwellings) and Non Domestic Rating (Commercial); Northern Ireland Valuation and Lands Agency – Domestic (Dwellings); Hong Kong Rating and Valuation Department (Dwellings and Commercial) property. The paper also considers the progress made in access to property data and data storage/retrieval.FindingsAutomated valuation programmes assist in the production of a valuation but its quality and accuracy are data and valuer led. One size does not fit all and there is no automated replacement for the subjective professional judgement of the valuer.Originality/valueThis paper considers the challenges, opportunities and possible problems when using computer driven valuation models for property taxation purposes.