Building Plots in the Same Neighborhood Considered Equal for Taxation
Official titleDecision of the Constitutional Court Dated 16/4/2026 and Numbered E: 2025/260, K: 2026/85
The Constitutional Court found the statutory provision stipulating that building plots be assessed on a neighborhood basis when determining the real estate tax base to be in conformity with the constitution and dismissed the request for annulment.
Details of the Regulation
In the application filed by the Kahramanmaraş 1st Administrative Court, it was argued that the phrase '...for building plots, each neighborhood...' in Article 29 of the Real Estate Tax Law No. 1319 is contrary to the right to property and tax justice. In the objection, it was maintained that building plot values may vary considerably across different avenues and streets within the boundaries of the same neighborhood; nevertheless, determining a unit value on a neighborhood basis causes a departure from the actual value.
In its examination on the merits, the Constitutional Court emphasized that the taxation power imposes a limitation on the right to property, but this limitation must be statutory, in the public interest, and proportionate. The Court stated that the assessment commissions' determination of unit values on a neighborhood basis draws a general framework and that this rule provides an applicable system without being bogged down in technical details.
In the decision, it was concluded that the assessment commissions may take concrete differences within the neighborhood into account when determining building plot values, and that the legislator's granting of discretionary power to the administration in this regard does not constitute a constitutional obstacle. Furthermore, the annulment request was unanimously dismissed on the grounds that the rule does not create an unforeseeable situation for taxpayers and that the freedom to seek legal remedies is not restricted since the judicial avenue remains open.
Questions You Might Have
- Does this decision cause my real estate taxes to decrease?
- No; on the contrary, it confirms that the current system is in conformity with the constitution; that is, there will be no change in the neighborhood-based valuation system.
- Why is the building plot value of my neighbor in the same neighborhood determined to be the same as mine?
- According to the AYM, this is an administrative convenience and a general framework; if the location of your building plot is manifestly worse than that of your neighbor, you must file a lawsuit against the individual valuation transaction, not against the general rule.
- Is there any dissenting opinion in the decision?
- No, the decision was taken unanimously with the participation of all members.
Key Terms
- Matrah
- The value or amount taken as the basis for calculating the amount of tax.
- Takdir Komisyonu
- The authorized board that determines the building plot and land unit values that will serve as the basis for real estate tax.
- Belirlilik İlkesi
- The rule that legal regulations must be clear, precise, and predictable.
- Ölçülülük
- The state where the limitation imposed on fundamental rights is balanced with the aim sought to be achieved.
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REGAS Commentary
This decision placed the methodology of building plot unit values determined every 4 years by municipalities through real estate tax assessment commissions under constitutional protection. For citizens, this means that the legal validity of the market values determined throughout the neighborhood will continue. However, the right to file a lawsuit in tax courts for those who individually believe that the valuation of their own property is excessively high still exists; the decision has merely confirmed that the 'neighborhood-based' system itself is not contrary to the constitution.