The decision on property tax in Fredrikstad municipality was valid

Fredrikstad municipality has levied property tax for many years. As a general rule, properties must be valued by means of a general valuation every ten years. The valuation may be postponed for up to three years under section 8 A‑3 of the Property Tax Act.

In December 2021, the Municipal Council decided to levy property tax on the basis of new valuations. Four private parties, whose property tax had increased substantially, brought an action challenging the validity of the Council’s decision and the individual appeal decisions concerning their respective properties.

The question before the Supreme Court was whether the deadlines for conducting a new general valuation had been exceeded, and, if so, whether this entailed partial invalidity on the ground that the municipality should have applied the lowest tax rate; see section 13 of the Property Tax Act.

The Supreme Court primarily concluded that the deadlines had been exceeded. The fact that the municipality had administratively adjusted the previous valuations under section 8 A‑4 of the Property Tax Act — which entails an increase in the valuations and an extension of their validity — did not mean that the deadlines for a new general valuation were postponed or ceased to apply.

The Supreme Court further held that the failure to meet the deadlines did not mean that the municipality was required to apply the lowest tax rate under section 13. That provision applies to “the first year” the municipality levies property tax, and also where property tax is reintroduced after a period without taxation. Fredrikstad municipality had administratively adjusted the valuations and thereby maintained their validity throughout the period from expiry of the deadline until tax was levied on the basis of the new valuations. Thererefore, there had been no interruption in the levying of property tax.

The judgment clarifies the relationship between general valuation and administrative adjustment under the Property Tax Act, and whether exceeding the deadlines for a new general valuation triggers the obligation to apply the lowest tax rate under section 13.

Read the judgment from the Supreme Court (Norwegian only) (PDF)

Area of law: Property tax, general valuation, administrative adjustment  kontorjustering 

Key paragraphs: 65–67, 81, 85–86, 88–89  

Justices: Bergsjø, Thyness, Stenvik, Poulsen, Steen