FIG Commission 9
![](http://ei.fig.net/organisation/comm/images/index/comm9_index.jpg)
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Work Plan 2011-2014
Original
work plan in .pdf-format
Title
Valuation and the Management of Real Estate
![](http://ei.fig.net/organisation/comm/9/images/plimmer_2011_120x180.jpg) |
Dr. France Plimmer, Chairperson of Commission 9 |
Terms of reference
- Valuation, being the estimating of value of all kinds of real estate by
valuers and appraisers for various purposes, including market value,
property taxation, eminent domain, investment, redevelopment and
refurbishment, and for both public and private purposes;
- Investment in real estate, investment planning and real estate
investment vehicles;
- Real estate finance, development finance, land use feasibility planning;
- Real estate economics, markets and market analysis;
- Management of all kinds of real estate at all levels;
- Asset management for corporate private and public sectors;
- Management of the use of buildings to ensure optimum benefits to
occupiers.
Mission statement
The mission of Commission 9 is:
- To advance the professional practice of valuers and property managers
working in all areas of real estate valuation and management;
- To research and publish ?best practice? for the benefit of valuers and
property managers in different jurisdictions and sectors of the industry,
for the benefit of the surveying community and to improve our services to
the wider public;
- To facilitate and generate the exchange of information, knowledge and
experience between surveyors for the benefit of the profession, our clients
and the wider public;
- To publicise and promote the work of surveyors to the public,
particularly to young people, governments and non-government organisations
and to enhance their perception of the value of surveyors and the services
they can deliver, especially in support of the global sustainability agenda
and the Millennium Development Goals;
- To co-operate and work with fellow surveyors in all specialisms of the
profession to further the objectives of FIG.
General
This work plan focuses on three highly relevant themes. Property taxation
recognises the social and economic value of real estate and provides revenue
which (normally) funds public services, for the benefits of the wider community.
Commission 9?s Working Group 9.1 comprises three study groups which focus on
three increasing important areas of study: the choice of tax base (9.1A); the
use of mass appraisal valuations (9.1B); and successful and efficient tax
systems for emerging economies (9.1C). Each of these addresses international and
pressing issues in the use of property taxes for the benefit of local
communities and demonstrates an important opportunity for FIG to use the
international experiences of its members to contribute to and inform the global
debate on property taxation.
Following on from the highly successful previous four years work on compulsory
purchase and compensation, Working Group 9.2 will investigate the issue of land
grab ? a highly topical and controversial issue which is causing international
concern, as well as severe individual and social hardship in relevant
communities. It is anticipated that this work should link into the interests of
the wider international community, thereby providing opportunities for
inter-organisational collaboration.
It is well recognised that, within both the residential and commercial worlds,
the asset with the largest single value is likely to be real estate. All sectors
of the global and local communities, therefore, rely on valuation and management
advice to achieve the optimum use of their land and buildings and to ensure that
such assets continue to provide a suitable and adequate ?setting? in which other
activities can take place, as well as maintaining or increasing their monetary
value to the owners, occupiers and the wider community who rely on such asset
values for pension rights and collateral, amongst other things. Recently,
attention has focused on the role of the public sector and how it manages real
estate assets on behalf of the community. Working Group 9.3 will investigate the
management of public property assets in developing countries with a view to
presenting guidelines on best practice for the public sector management
community.
Policy Issues
Property taxation is ubiquitous ? there are very few countries which do not
impose some kind of tax specifically on land and / or buildings. It is usual for
such a tax to be levied, collected and spent by local authorities, even if the
rate of tax is fixed by a higher tier of government, but this is not always the
case.
The working group will comprise three study groups, the work plans of which are
presented below.
Policy issues
Land taxation policy includes many aspects.
- On the one hand, land taxation should bring fiscal revenues. Which is
tax base is most easy to administer and to assess? Which tax base is
justifiable? Which brings sustainable and high fiscal revenues? Will the tax
be accepted by the tax payers? Particularly for valuation purposes it has to
be asked whether the tax is levied annually and in a comprehensive way (as
the property tax) or only occasionally (e.g. betterment tax). Does it make
sense to use the same tax base and the same valuation methods for different
sort of taxes (land taxation, income tax, property transfer tax)? Especially
if the tax is levied annually and in a comprehensive way, mass valuation is
necessary. Mass valuation always faces a trade-off between efficiency and
justice. Hence, group 9.1. A will work in close co-operation with group
9.1.2.
- On the other hand, aspects beyond fiscal revenues also have to be
considered. Land taxation is discussed more and more as a tool for land use
policy and settlement policy. It is required to support land use planning
and ecological targets. Is there any trade off between the targets to be
taken into account? Are there any distortions of the market to be
considered? These and other questions need systematic analysis and
examination. Maybe different answers have to be given for different
institutional environments.
Moreover, different countries have different stages of institutional
development and governance. Is there one size that fits all? Or do different
stages of development, different cultures etc. have to be taken into account?
Co-chairs
![](http://ei.fig.net/organisation/comm/images/comm9/com9_lohr_120.jpg) |
Prof. Dr. Dirk Löhr,
GERMANY,
e-mail: d.loehr[at]umwelt-campus.de
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![](http://ei.fig.net/organisation/comm/images/comm9/com9_thiel_120.jpg) |
Prof. Dr. Fabian Thiel,
GERMANY
Email:
fabian.thiel[at]fb1.fh-frankfurt.de
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Specific Projects and Workshops
Basically compound tax bases or only the taxation of unimproved land is
possible. The tax might be based on the value of property or on auxiliary tax
bases, e.g. the size of a plot.
Research objects: |
Value |
Auxiliary tax base (e.g. size) |
Land (as isolated tax base) |
Site value tax
Betterment tax
(Income tax) |
Site tax
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Land and building (as compound tax base) |
Property tax
(Property transfer tax)
(Income tax) |
Simplified property tax |
Based on this understanding, workshops shall assess the subsequent topics:
- Support of land use planning:
Land taxation may pursue other purposes than only fiscal revenues. Some tax
bases may support the planning system, others may set disturbing incentives.
Hence, urban sprawl etc. might be supported, which is not desirable for many
(in particular ecological) reasons. Regarding alternative tax bases, the
subsequent research questions should be asked:
- Is the planning supported or foiled by the tax (base)?
- What are the incentives in regard of ecology (uncontrolled
development, urban sprawl etc.
- Distribution and justice:
It has to be analyzed whether a tax base is lifting prices and rents or
gives pressure on them. Can the tax be shifted (distribution impacts)? The
impacts on distribution and social consequences have to be assessed.
Furthermore, tax bases have to be analyzed in terms of equity: Do they put
in place systematically advantages or disadvantages for certain groups? A
just tax base would treat all tax payers equal. Efficiency affords
simplifying methods. On the other hand, a just valuation needs to be
accurate. How much simplification is just and reasonable without a violation
of the essential principle of equality in taxation?
- Effects on the (real estate) markets
Are there any distortions of the market to be considered (e.g. a tax wedge)?
Is the economic activity stimulated or hampered? Which are the impacts on
the transaction volume of land and buildings? Is the construction industry
blocked or supported?
- Tax revenue
Which tax base is most easy to administer and to assess (applicability for
mass appraisal, close cooperation with group 9.1 B)? Which tax base is
justifiable? What valuation methods are favorable for which kind of property
and for which circumstances? Which tax base brings sustainable and high
fiscal revenue?
- Justification
A land tax is always an attenuation of property rights. Hence, it needs a
sound justification. Which tax might be justified best? What is the
experience with courts in different countries
- Evidence
The group has to look for evidence and to collect experiences.
- Value concepts / international comparison: Does it make sense to
base different kind on taxes (income tax, inheritance tax, property tax)
on the same value concept and on the same assessment methods?
- Empirical evidence: Collecting and analyzing experiences from
different countries.
- What institutions have to be built up in order to implement the
FIG-recommendations?
Publications
- Technical papers presented in annual meetings
- Final report and FIG Guidelines at FIG congress
Timetable
- 2011: Discussion of basic issues and allocation of tasks
- 2012 ? 2013: research papers for Technical Sessions
- 2014: First draft of FIG recommendations and FIG guidelines
- 2015: Presentation of final FIG recommendations and FIG guidelines
Beneficiaries
- All FIG member organizations, UN, other professional international and
national organizations, agencies and governments.
Policy issues:
- Valuers contribute to an efficient, effective and socially acceptable
property tax in their role as assessors of the tax base. Technical valuation
skills support appropriate methodologies, in particular, the use of Computer
Assisted Mass Appraisal (CAMA) techniques, as well as ensuring improved
access for the public to relevant information, advice and data.
- However, the use of mass appraisals involves a degree of technical skill
and knowledge which is beyond the understanding of the average taxpayer and
which may involve a trade-off between efficiency and ?justice?. This
therefore imposes an additional responsibility on the valuation profession
to ensure that the highest degrees of equity and ?fairness? are achieved
within the limitations of the technology, and that acceptable levels of
explanation and reassurance are available to all parties, particularly
taxpayers.
- This working group will investigate and publish appropriate guidelines
for the development of mass appraisal techniques to support property tax
assessments, including the appropriateness original data sources (property
characteristics, sales, rents, yields, costs asking prices, or valuations)
and of indices to monitor the property market, which will be particularly
useful during the current economic climate.
Chair
![](http://ei.fig.net/organisation/comm/images/comm9/com9_pashoulis_varnavas_120.jpg) |
Varnavas Pashoulis
CYPRUS
E-mail: var[at]cytanet.com.cy
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Workshops/Seminars
Publications
- FIG reports, focusing on guidelines as to how best to develop, manage
and implement mass appraisal techniques.
Timetable
Beneficiaries
- Increasingly, property tax systems around the world are developing,
implementing, and refining mass appraisal techniques to support tax
assessments with the overall scope to generate public income to provide
public services for the benefit of the community. By doing this, there is a
multi benefit effect, due to the fact that these assessments can also be
used as the basis to support single property valuations by private or public
bodies for advisory purposes, for Capital Gains Tax Assessments, for
Transfer Fee assessment, for compulsory purchase purposes, as well as to
publish property indices in order for the property market to be more
transparent and efficient. . Thus, the outcome of this working group will
support such initiatives as well as providing local
authorities/municipalities, valuation standards organisations and those
international organisations with an interest in securing equitable,
effective and efficient public services for increasingly sustainable
communities. While focusing on the needs of property taxation, this
investigation into mass appraisal techniques will also benefit mortgage
lenders who use such techniques in their assessment of loans and in
monitoring the fluctuations of the property values and where appropriate to
take precautionary measures either at booming or recessionary times. Also
benefiting will be FIG member organisations, UN and other professional
international and national organisations, agencies and governments and local
authorities.
Study Group 9.1.3 - Successful and Efficient Taxation Systems for Emerging
Economies
Policy issues:
- This working party will investigate property tax systems in emerging
economies focusing on a case study approach, seeking examples of best
practice.
- Regions of interest for the sourcing of case studies are likely to be
South America, and potentially Africa and Central and Eastern Europe,
depending on interest and data availability.
Chair
![](http://ei.fig.net/organisation/comm/images/comm9/com9_nystrom_steven_120.jpg) |
Steven Nystrom
USA
E-mail: nystrom[at]tampabay.rr.com
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Workshops/Seminars
Publications
- A FIG report proposing guidelines for emerging economies to achieve a
stable and sustainable property tax system.
Timetable
Beneficiaries
- Beneficiaries of this research will be central and local governments in
emerging economies as well as property valuers / assessors, taxpayers and
the wider community. Valuers and assessors from developed countries should
also find the output of benefit, as should international organisations with
an interest in the wider effects of property taxation to support such
economies. All FIG member organisations, UN and other professional
international and national organisations, agencies and governments will also
benefit.
Working Group 9.2 - Large Scale Land Acquisition for Agriculture
Policy Issues
- This working party builds on the earlier of 2007-2010 Working Group 9.1
(Compulsory Purchase and Compensation in Land Acquisition and Takings, led
by Professor Kauko Viitanen), which has resulted in the Hanoi Declaration
(FIG Publication 51) and the Compulsory Purchase and Compensation.
Recommendations for Good Practice (FIG Publication 54).
- There remains an appetite within the Commission 9 delegations to
continue FIG work in this area and, of increasing international concern is
the related topic of land grab, being the acquisition by foreign corporates
of productive farmland from indigenous land holders. Certain international
organizations has expressed concern about the possibility of exploitation.
Chair
![](http://ei.fig.net/organisation/comm/images/comm9/com9_kakulu_120.jpg) |
Dr. Ibimina Kakulu
NIGERIA / UNITED KINGDOM
E-mail: ibkakulu[at]hotmail.com |
Workshops
Publications
- An FIG report on the relevant experiences, problems and, in particular,
proposed solutions for the underlying issues.
Timetable
Beneficiaries
- Given the level of impact on the food productive capabilities of the
?host? country, issues of food availability and pricing, as well as human
rights mean that this topic will have relevance for international
organisations, including the FAO and the World Bank, as well as corporate
purchasers (concerned about their global ethical reputation) and members of
communities which are adversely affected by the long term effects of land
grab. This work therefore has huge relevance for FIG, as an organisation,
FIG member organisations, and UN and other international organisations.
Working Group 9.3 - Management of Public Property Assets in
Developing Countries
Policy issues
This working group will investigate fixed public property assets within
developing countries with a view to establishing how such real estate assets are
managed and to develop ?best practice? guidance within such environments. This
working group will focus on management issues, rather than legal frameworks
(which vary between countries); and it will not cover the technical, computer
tools involved in management.
The programme will cover three components:
- documentation, defined as the permanent process of collecting,
preparing, evaluating, and updating of the necessary information. The
working group will seek to define a generalised and simplified data
structure for fixed public assets in combination with recommendations for a
professional inventory system;
- administration, to define the needs, duties and responsibilities of a
property management unit in public administration (principles, tasks,
organisation, equipment, personnel etc.). This will reflect on the clients
of property management and their needs; the organisation of processes; and
the definition of the interfaces to the clients and other processes; and
- operation of public properties. Recognising that the operational costs
during the life cycle of real estate are higher than the original
construction costs, the working group will consider the following issues:
- the principles/responsibilities of public/corporate real estate
management;
- optimising the use of public properties;
- optimise/reduce the operational costs (e.g. cleaning, maintenance,
rebuilding, energy, waste, insurance, security catering);
- optimisation of occupancy;
- development/redevelopment of public properties;
- increasing economic revenues;
- capacity building of staff;
- cost transparency; and
- the creation of a consistent documentation system for the operating
processes.
Chair
Members of this group should ideally consist of those experienced in
property asset management from both developed and developing countries. They
should be willing to participate and contribute to the group?s programme based
on their experiences in property asset management.
Workshops
Publications
- FIG report with Guidelines for public property asset management in
developing countries, based on the experience of the group members,
available literature and other contributions.
Timetable
- FIG report will be launched in 2014 in Kuala Lumpur
Beneficiaries
- Beneficiaries of this research will be public sector asset managers in
developing countries as well as their client owners, occupiers and the wider
community, as well as all FIG members and UN and other international
agencies and investors. Property asset managers from developed countries
should also find the output of benefit, as should international
organisations and investors in public sector assets.
Other Activities
Co-operation with Other Commissions and organisations
Commission 9 will support and contribute to FIG task forces, to the Standards
Network and, in particular, to the Young Surveyors Network. In addition, where
useful, links will be developed with both the World Bank and FAO. It is
envisaged that such international organisations will be particularly interested
in the work of the Working Group 9.1 (Property Taxation) and 9.2 (Land Grab).
The possibility of joint events will be investigated.
Co-operation with United Nation Organisations, Sister Associations and other
Partners
Commission 9 is co-operating with FAO and UN-HABITAT on Commission 9 related
issues.
Commission will investigate co-operation opportunities with a range of relevant
international organisation, including the Internal Property Taxation Institute
(IPTI), International Association of Assessing Officers (IAAO) and the Lincoln
Institute of Land Policy.
Commission Officers
Commission Chair
![](http://ei.fig.net/organisation/comm/9/images/plimmer_2011_120x180.jpg) |
Prof.
Frances Plimmer
Professor Frances Plimmer Dip Est Man, MPhil, PhD, FRICS, IRRV, FInstCPD,
Senior Research Officer
The College of Estate Management
Whiteknights
Reading
Berkshire RG6 6AW
UNITED KINGDOM
Tel. + 44 1189 861 101
Fax + 44 1189 7501 188
E-mail: f.plimmer[at]btinternet.com
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Vice-Chair of Administration and Communications
![](http://ei.fig.net/organisation/comm/9/images/mccluskey_120.jpg) |
Dr. W. J. McCluskey,
University of Ulster
Jordanstown
Co. Antrim
N. Ireland,
BT37 0QB
UNITED KINGDOM
Tel: +44 (0)2890 366 567
Email:
Wj.mccluskey[at]ulster.ac.uk
Web site: www.ulster.ac.uk |
Co-chairs of WG 9.1 - Property Tax
Study Group 9.1.1 ? Tax Bases
![](http://ei.fig.net/organisation/comm/9/images/com9_lohr_120.jpg) |
Prof. Dr. habil. Dirk L?r, MBA
University of Applied Sciences, Trier /Environmental Campus Birkenfeld
Center for Soil Protection and Land Use Policy (ZBF-UCB)
P.O. Box 1380
D-55761 Birkenfeld
GERMANY
Tel. +49 6782 17-1324
Fax + 49 6782 17-1437
Email: d.loehr[at]umwelt-campus.de
Web site: www.zbf.umwelt-campus.de |
![](http://ei.fig.net/organisation/comm/9/images/com9_thiel_120.jpg) |
Prof. Dr. Fabian Thiel,
Fachhochschule Frankfurt am Main ?
University of Applied Sciences
Vertretungsprofessor f? das Fachgebiet
?Immobilienwirtschaft/Immobilienbewertung?
Fachbereich 1 Architektur, Bauingenieurwesen, Geomatik Nibelungenplatz 1
60318 Frankfurt am Main
Email:
fabian.thiel[at]fb1.fh-frankfurt.de
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Study Group 9.1.2 - Mass Appraisal Systems
![](http://ei.fig.net/organisation/comm/9/images/com9_pashoulis_varnavas_120.jpg) |
Varnavas Pashoulis
Lands and Surveys Department
29, Michalakopoulou Street, 1075,
Nicosia,
CYPRUS
Tel. +35722804830
Fax +35722804826
Email:var[at]cytanet.com.cy
Web site:
http://www.moi.gov.cy/moi/DLS/dls.nsf/
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Study Group 9.1.3 - Successful and Efficient Taxation Systems for Emerging
Economies
![](http://ei.fig.net/organisation/comm/9/images/com9_nystrom_steven_120.jpg) |
Steven Nystrom
Appraisal Institute
5044 Cypress Trace Drive
Tampa
33624
Florida
USA
+ 1 813 9633510
E-mail: nystrom[at]tampabay.rr.com
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Vice-Chair and Chair of WG 9.2 - Large Scale Land Acquisition for
Agriculture
![](http://ei.fig.net/organisation/comm/9/images/com9_kakulu_120.jpg) |
Dr. Ibimina Kakulu
Department of Real Estate and Planning
University of Reading
Reading RG6 6AW
NIGERIA/UNITED KINGDOM
Tel. + 44 7766593660
E-mail: ibkakulu[at]hotmail.com |
Vice-Chair and Chair of WG 9.3 - Management of Public Property Assets in
Developing Countries
16 August 2011
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