How Lithuania Came to Be a Leader in Mass Valuation Systems in the World? Arvydas Bagdonavicius State Enterprise Centre of Registers

PREREQUISITES OF SUSTAINABLE MARKET DATA BASE PROPERTY TAXATION Conclusions of the Conference Europe and Central Asia Property Valuation and Taxation for Improving Local Governance in ECA (P152456), 2015, 3-5 June, Vilnius Transparent and efficient land and property markets where prices are openly and freely negotiated; Reliable ways of collecting accurate data on transactions – prices and rents; Reliable systems for recording properties in tax rolls; A valuation infrastructure comprising valuation standards, qualification and professional education of valuers and ethical standards; Good communication and a strategy to explain to citizens, politicians, etc. the use and purpose of mass valuation and property taxation – need to see the connection between the taxes and public expenditures and to be persuaded that taxes are fair? Need to have the underpinnings of good laws that satisfy constitutional requirements and that have public support; Property taxes and systems that meet requirements for good governance; Reliable systems for collecting billed taxes; collection led strategies

INITIAL CHALLENGES Build foundations for a market economy Privatize land and & buildings Strengthen land tenure/ protect private interests in real estate Foster open property markets Develop real estate cadastre and register system Introduce recurrent roperty taxes Source : Richard Almy, Introducing Market Value-Based Property Taxation in Lithuania. Conference Property Valuation and Taxation for Fiscal Sustainability and Improved Local Governance in ECA Fundamentals to have a market price based property tax Land and property registration system; Property attributes; Transparent real estate market; with rationale price determination; Procedures to record market prices; Market price monitoring; Information shaping system Valuation profession; Centralised valuation infrastructure. Source: Prof Dr William McCluskey, Market Value Based Property Tax in Kazakhstan Pilot Project - Astana Apartments. Conference Property Valuation and Taxation for Fiscal Sustainability and Improved Local Governance in ECA.

Achievements Mass valuation system integrated with cadastre & register; Model building skills dispersed countrywide ; Multivariate models; International best practices adapted to Lithuania’s situation; Cost-conscious; Communications; Efforts to secure approval of stakeholders; Use of Internet to secure transparency; Appeals system; Multipurpose use; Mass valuation results are easily applicable for decision making on different issues; Market data sharing. Source : Richard Almy, Introducing Market Value-Based Property Taxation in Lithuania. Conference Property Valuation and Taxation for Fiscal Sustainability and Improved Local Governance in ECA..