For purposes of determining taxable value, properties are classified into categories. The classification of a property into a particular category is proved by:
- the building permit for its construction;
- the deed establishing horizontal ownership; and
- its title of acquisition.
If none of the above documentary evidence is available, then the category – that is, the type of property – is proved by its income tax declaration. However, if substantial and permanent alterations have been made to the building, and its use differs from that defined in the building permit, the deed establishing horizontal ownership or the title of acquisition, the property is reclassified to the category corresponding to its new form.
It follows that, in determining the character of the property being transferred for the purpose of fixing the objective value subject to transfer tax, regard is had to the actual configuration of the property at the time of transfer for its use as a dwelling or as a special-purpose building, and not to the original intended purpose stated in the building permit (Council of State judgment 1367/1992).