Assessment of Real Property Valuation for Taxation in Karat Town.

Real property valuation is the estimation and determination of the worth or value of an interest in real property and therefore requires some level of technical and professional expertise and skills to execute the practice. One of the key concepts of real property valuation is that it is based on physical observation of such property, whether land or buildings. This thesis, titled as Assessment of Real Property Valuation Practice for Taxation in Karat Town, was carried out basically to assess current real property valuation practice, the contribution of real property valuation practice to local revenue development, and major challenges affecting real property valuation practice in the study area. This paper also evaluates the fairness and accuracy of real property valuation practices for taxation in Karat town and examines the institutional capacity of the concerned office to implement real property valuation practices. Beyond the institutional capacity, it also cross-checks the valuation methods used to assess the tax on real property in Karat town. Its emphasis is on assessing real property valuation practices for tax development and giving recommendations based on the results of the study. The study used both qualitative and quantitative research methods in data collection and analysis. A simple random sampling method was used to select participants to answer the research questions of the study, while respondents for the interview were selected by non-probability sampling. In general, the study result shows that real property valuation practice in Karat town is carried out by a committee. According to the responding real property owners, the valuation practice carried out by the committee is not fair and accurate. The currently on-going valuation practice has also contributed to the existence of non-taxable real property owners, which results in less tax collection, which is dangerous for both local and national economic development. This study also identified a lack of professional valuators, a shortage of technological support, and less awareness of real property tax payers as the major challenges affecting real property valuation practice in the study area. Finally, the researcher suggests that the local government appoint professional valuators in appropriate positions, increase technological support in the area of real property valuation, and raise awareness among real property owners as optimal solutions for increasing the contribution of real property valuation practice for taxation purposes and overcoming the challenges identified by the study results