Dutch city uses black-box algorithm for home valuation
In 2016, the municipality of Castricum, Netherlands, used an algorithm to set the WOZ value of a resident's home at €320,000, affecting their property tax. The resident challenged the valuation, arguing earthquake damage reduced the value, but the municipality could not explain how the algorithm arrived at the figure. On appeal, an Amsterdam court upheld the valuation, finding it reasonable based on comparable sales, but ordered the municipality to pay court costs for failing to provide an explanation as required by GDPR.
- Company
- Municipality of Castricum