Ligningsverdi

Ligningsverdi is the older name for what is today called formuesverdi (the tax value set on an asset). The term was officially replaced from the 2010 income year, but you still meet it in older documents, purchase contracts, tax returns from before 2010 and in everyday speech among people who have been in the industry for a long time.

The change of term was part of the larger reform of wealth taxation of housing that came with the 2010 national budget. Previously, the ligningsverdi was a fairly freely set standard amount, often based on the original acquisition cost adjusted by a coefficient, and it could be as low as a few percent of the real markedsverdi (market value). That created large differences between owners who had held the same home for a long time (a very low ligningsverdi) and new buyers (a newly set value close to market level). The new formuesverdi model, set out in skatteloven, the Tax Act, § 4-10, multiplies the bruksareal (usable floor area) by a square metre rate from SSB's house price statistics and by a percentage that differs for primærbolig (primary home) and sekundærbolig (secondary home). The model gave more even valuation across owners and over time, but it also lifted the wealth tax base considerably for secondary homes.

In practice, the difference between the two terms is purely one of naming when you read a more recent document: if a tax return from the 2010 income year or later says "ligningsverdi", it refers to formuesverdi. Documents from before the 2010 income year, on the other hand, use the old model, and the figure in an older purchase deed or estate settlement has little to do with today's calculation basis.

The term lives on in everyday use and still turns up in contexts such as eiendomsskatt, property tax (municipalities that base eiendomsskatt on the Norwegian Tax Administration's figures still use the old name in some municipal circulars), and in valuation for estate settlements, where older properties may have a ligningsverdi sitting in the paper archive as a reference point. You also meet it when banks and lawyers use older templates that have not been updated since 2010.

Do not confuse the term with:

• Markedsverdi: what the property can be sold for on the market.
• Eiendomsskattegrunnlag: the municipality's own takst (valuation), or use of the Tax Administration's wealth tax figures (with a mandatory reduction factor) as the calculation basis for eiendomsskatt.
• Takst: a professional assessment of markedsverdi made by a certified takstmann (valuer).

The term is also used in a completely different context, for næringseiendom (commercial property) and securities: the ligningsverdi of commercial property and shares is still relevant for wealth tax, but it is calculated under other rules than housing (yield value for commercial property, a share of the company's equity for unlisted shares). The rules are set out in skatteloven chapter 4.

For owners looking for the ligningsverdi of their home today: the figure is shown under "formuesverdi" in your most recent tax return at skatteetaten.no. The term ligningsverdi has been retired in official text, but it means much the same thing.

From Placepoint's dictionary: Ligningsverdi

More information: Skatteetaten: Housing and property, Lovdata: Skatteloven § 4-10, Lovdata: Skatteloven chapter 4

English: Tax-assessed property value (older term, replaced by formuesverdi).

Frequently asked questions

What is ligningsverdi?

Ligningsverdi is the old name for formuesverdi, used up to the 2010 income year. The term means the value the Norwegian Tax Administration sets on a home as the basis for wealth tax.

Why is it called formuesverdi now?

In 2010, Norway changed the model for valuing housing. The new standard model links the value to a square metre rate from Statistisk sentralbyrå (SSB) and to a percentage that differs for primærbolig and sekundærbolig. The name was changed at the same time to mark the difference.

Where do I find the old ligningsverdi?

Older tax returns, both skattemelding and the earlier selvangivelse, have "ligningsverdi" as a separate item. You find historical figures in the Tax Administration's archive or in your own documents from before 2010. The amounts are not comparable with today's formuesverdi.

Is ligningsverdi still used officially?

No. Current legislation and tax returns use formuesverdi. The term ligningsverdi still appears in older documents, purchase deeds and everyday speech.

Is ligningsverdi the same as market value?

No. Neither ligningsverdi (old) nor formuesverdi (new) is the same as markedsverdi. Both are standardised figures for tax purposes and normally lie well below what the property can be sold for on the market.