1.2 billion kroner windfall for homeowners after property tax debacle

The government has asked an independent panel of experts to draw up a new method for property valuations that are used to tax homeowners

Homeowners who paid too much property tax because their homes were overvalued by the tax authority Skat will be reimbursed 1.2 billion kroner, the tax minister, Holger K Nielsen (Socialistisk Folkeparti), announced today.

Nielsen also promised to establish a new system to value properties instead of Skat, which has faced criticism for its poor track record.

“Public property evaluations have not been good enough,” Nielsen said in a press release. “That is why the government has decided to establish a new valuation system. Home owners need to trust that the tax they are paying is as correct as possible.”

READ MORE: New property assessment method by 2015

Skat's poor performance
The decision arrives after it was revealed that 75 percent of homes were either over or undervalued by at least 15 percent in 2011.

For now, homeowners will pay taxes according to their 2011 property valuations.

READ MORE: Inaccurate property evaluations may have cost homeowners millions

The new valuation system will be rolled out in 2015 and if a property is valued at less than the 2011 valuation, homeowners can claim compensation.

The new valuation system will be drawn up by an independent panel of experts who have until June 2014 to present their findings.

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