Sweden: Property tax investigation regarding industrial properties

Initiative to evaluate property tax rules regarding certain types of industrial properties

Initiative to evaluate property tax rules regarding certain types of industrial properties

The government has launched an initiative to evaluate the property tax (fastighetsskatton) rules regarding certain types of industrial properties.

Under the current valuation rules, property tax is paid for both land and industrial buildings. In certain circumstances, property tax is also paid for mechanical equipment located on the industrial property when such mechanical equipment is considered to constitute building accessories. In other words, the value of the equipment is taken into account in determining the assessed value of the industrial building. However, property tax is not paid for certain items (including certain other types of mechanical equipment) if these are not considered to be building accessories.

The property tax rules are generally strictly, but not always uniformly, applied.

The investigation initiative has been tasked to:

  • Map the collection of property tax on mechanical equipment that constitutes building accessories (i.e., the type of mechanical equipment that is taken into account when determining the assessed value of the industrial building)
  • Analyze whether there is a reason to exempt building accessories in the form of mechanical equipment from property tax
  • Consider whether application of the current rules results in an unequal and unfair basis for property tax for industrial buildings and whether the rules reduce incentives for new investments
  • Analyze whether there are reasons to exempt certain equipment from property tax, whether an exemption can be formulated in an acceptable manner and, if so, to submit a legislative proposal

Read a June 2022 report (Swedish) prepared by the KPMG member firm in Sweden


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