The Tax Ministry will scrap the current system used for assessing property value and instead ask an independent commission to come up with a more accurate model.
The move comes after revelations in August that up to 75 percent of property evaluations were either too high or too low.
The commission is expected to be made up of estate agents, accountants and others with knowledge of the property market. It is due to be ready for use when Skat, the tax agency, makes its next bi-annual property assessments in 2015.
The plan to set up the commission is due to be unveiled today, but according to information obtained by Politiken newspaper, representatives from Skat will be left off the panel due to a lack of confidence by the government that officials there would be able to come up with a fool-proof system for estimating property value.
SEE RELATED: Inaccurate property evaluations may have cost homeowners millions
The new bi-annual assessments were due out later this year, but have now been dropped out of concern that they too would provide inaccurate evaluations.
Until the 2015 assessment is complete property owners will continue to pay taxes according to their 2011 assessment.
No additional taxes
For those whose 2011 assessment overstated the value of their property, the Tax Ministry has promised that any excess taxes will be repaid, but not until after the 2015 assessment.
According to the Tax Ministry, the refund will occur automatically and homeowners will not be permitted to appeal their tax assessments this year or next.
National tax regulations prohibit Skat from requiring taxpayers to pay additional taxes if the organisation erroneously underestimated how much they should pay.
