This year, every fourth apartment that Obos manages has to pay property tax. This is in stark contrast to the promise from Raymond Johansen (Ap) in the 2015 election campaign.
Raymond Johansen defends Oslo’s model for property tax, which he believes is “Norway’s most moderate”. Photo: Siri Øverland Eriksen
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Published: 02/09/2023 15:49
Updated: 02/09/2023 16:33
The short version
During 2023, every fourth apartment managed by Obos in Oslo will have to pay property tax. This is despite a promise made by Raymond Johansen (Ap) during the election campaign in 2015, that people with Obos flats would be exempt from tax. The development is due to the significant increase in house prices, which has resulted in more homes being valued higher than the minimum deduction. A total of 139,000 housing units will pay property tax in Oslo in 2023. This amounts to 43 per cent of the city’s housing units.
The summary is created with the help of artificial intelligence (AI) and quality assured by Aftenposten’s journalists.
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– No Obos apartments will receive property tax, promised Raymond Johansen in the election campaign in 2015.
But in 2023, every fourth apartment managed by Obos will have to fork out property tax. This shows figures that Obos has prepared for Aftenposten.
Obos’ figures include does not condominiums that Obos also manages a part of, and which are often in a higher price range than traditional housing associations.
“4 out of 5 avoid property tax”, it was also said in Oslo Aps’ election brochures in 2015.
A total of 139,000 housing units pay property tax in Oslo this year.
This means that 43 per cent of all housing units in Oslo are now covered by the tax. This is linked to the strong house price growth during the period. More and more homes are valued higher than the minimum deduction.
Fact
This is how the property tax in Oslo is calculated
The property values this year are taken from the tax settlement for 2021.
When the tax is calculated, the property’s value is set 30 per cent lower than the market value.
Then comes a minimum deduction of NOK 4 million per housing unit.
Finally, a tax of 3 per thousand is calculated on what is left. No home that is valued at less than 5.8 million will be liable for tax.
The minimum deduction has remained flat at NOK 4 million since 2016.
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Raymond Johansen has no regrets
– I think no one could have imagined how high the price development for housing in Oslo has been. But at the same time, I believe that the moderate level we are currently at is fully justified, says Raymond Johansen.
– Do you regret that quote about Obos apartments never getting property tax?
– No, not at all. I said that in 2015. But I haven’t run for eight-year terms.
– No, you didn’t say that in 2019?
– I didn’t say that in 2019. It was in 2015, and what I said was a completely correct calculation of the number of homes that were valued at 4.5 million or less. And then things take on a life of their own, regardless of the fact that you suddenly get zero interest and the value of all apartments rises. There are things I cannot control.
Johansen believes that the property tax as it is designed in Oslo is “Norway’s most moderate”.
– Remember that if you have an apartment worth less than 5.75 million, you do not pay property tax. On a home with a value of 6 million, you pay around NOK 600 a year.
Right warned
– This was exactly what we warned against in 2015, says Høyre’s candidate for Oslo city council, Eirik Lae Solberg.
– At the time, we thought that the property tax would affect ordinary people. Ap called it intimidation. It turned out to be fact. And Raymond’s claims that this would not affect Obos flats turned out to be completely wrong.
He says the Conservative Party is going to the polls to reduce the property tax on housing. According to Solberg, it will happen gradually.
First for housing. Then for commercial property.
– We believe that no one with a home worth less than NOK 7 million should pay property tax. Therefore, we will start by increasing the minimum deduction. How many years it will take before the entire tax is abolished will depend on the municipality’s finances.
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2023-09-02 14:33:24
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