External audit praises Slovene valuation systems
International Monetary Fund conducted an external evaluation of Slovenia's Property Tax Act and related Mass valuation system, implemented by our company. It is a worthwhile reading as it contains lots of recommendations, which are relevant for most of countries introducing property valuation.
Amongst other things it provides an insight in our computer aided mass appraisal system, which received several positive remarks:
- “Is the Slovenian system of sufficient quality to serve as the basis for computing accurate and defensible market value estimates for multi-agency use?” The answer to the question is “yes, it is an excellent system, with elaboration”.
- Two aspects of the computer-assisted mass appraisal system (CAMA) as implemented by the Valuation Office are noteworthy. The first is the design and configuration of the system itself. The user interface and the integration of spatial data with tabular data are consistent with worldwide best practices. The system is intuitive and easy to navigate. The second is that the valuation methodology is designed to operate in an environment that has scarce market evidence. The model structures are sound and well thought out. The techniques to overcome sparse data are creative and fostered by necessity.