Authorities will reduce the estate tax with a sharp drop of prices on the market


The authorities are ready to introduce a state monopoly on cadastral valuation of real estate upon which is calculated the property tax for companies and citizens. Monday, April 25, the government Commission on legislative activities endorsed the Ministry prepared a draft law (the text is from), in which cadastral valuation will be able to hold public institutions only. Now the cadastral value of the property determined by independent appraisers — commercial company, who are selected by the regional authorities. If the government and the state Duma will approve the bill, it can come into force from 1 January 2017.

What is important cadastral valuation

The new system of real estate taxation, proceeding from its cadastral (close to market) value, phased in Russia in 2014. Earlier physical persons pay the tax on the inventory value, which included only the cost of materials and construction operations adjusted for depreciation of the building, and legal entities — from book value, which is comparable to the inventory. By 2020, the transition to taxation based on cadastral value of the property, must be completed in all regions and for companies and for citizens. The Moscow government in 2014, beginning “to test the new rules only owners of shopping and office center with an area over 5 thousand sq. m.

In March 2015, has conducted a study which showed that during the transition to the new system of calculation of taxes the amount of property tax for 40% of entrepreneurs increased 2-6 times, and for a fifth (21%) business tax increased 6-10 times in the sample were 3.3 thousand of buildings, structures and premises in Moscow). In 2016 in 28 Russian regions, including Moscow, the tax under the new system for the first time will need to pay individuals.

A conflict of interest

Prime Minister Dmitry Medvedev instructed to transfer the cadastral valuation of real estate appraisers of the state in 2015. The decision to refuse the services of private appraisers was associated with the transition to the calculation of taxes based on the cadastral value: the authorities were afraid of mass discontent with a tax increase during the election period, explained several deputies of the state Duma.

Approved by the government Commission the bill allows to determine the cadastral value of any real estate appraisers only state — created or existing employees of budgetary institutions (in December 2015 at a meeting with officials of the Ministry of economic development, deputies of the state Duma Committee on property offered to transfer the functions of existing gasienicowa BTI). The representative of the Ministry of economic development reported that the rating will be “state budget companies, new or existing, will decide how the subject”, without specifying details. The bill also envisages the introduction of Federal oversight to the regional government valuers. The control function will be in rosreestra.

Against the monopoly of the state appraisers was organized by business organizations. “Given that revenue from land tax and property tax go to the regional and local budgets, the transfer of a cadastral estimation of the regions controlled by regional administrations of the organization will lead to a direct conflict of interests”, — warned in October the head of RSPP Alexander Shokhin. Budget for the establishment of cadastral valuation will be in direct dependence on regional authorities, drew attention in his opinion on the bill, the specialists of “Support of Russia”.

But April 14 during a straight line President Vladimir Putin has approved the introduction of the state cadastral Institute of valuers, supporting the government’s reform option. Private companies “are not responsible for the results of their work”, explained Putin: because of this, two identical apartments, for example, can be evaluated in completely different ways. According to the President, responsible for the results of the assessment to correctly assign to the state institutions. This will allow people to defend their interests not only in courts, but administratively, he said.

Spending in all regions of the state cadastral valuation of real estate can reach roughly 3.5 billion rubles — an average of 40 million RUB over the value of land and objects of capital construction in each of the 85 regions, calculated at the request of the head of the educational-methodical Department of the Russian society of appraisers Peter shoemaker. Cadastral valuation is performed at least once in five years. But under the new system the expenses of the regions on the rating will increase and spending on maintenance of the “budget” of appraisers, said shoemaker. Now own a budget establishment, ready to carry out cadastral valuation of real estate, is only in St.-Petersburg, in other regions of appraisers will have to create, he said.

After the market

The bill assumes that the cadastral appraisal will, as now, be carried out as planned — at least once in five years. But kosienski will be required unscheduled to revise the cadastral value in the case of falling market prices for real estate. To monitor the prices will Rosreestr every quarter in posting your own index of real estate market. In the fall of the index by 30% or more (to the date of the last cadastral assessment; in each region it is carried out at a time) the evaluator will be required to recalculate. To revise the inventory cost due to market conditions it will be possible only downward, said the bill.

In the crisis of 2008-2009, housing prices in Moscow fell by about 10-12%, since the beginning of 2014 fell by 10-15%, says the head of the company “IRN-Consulting Tatyana Kalyuzhnova. “In the regions of approximately the same dynamics, but, given that the economic situation worsens, prices may fall 30% in the next several years,” she said. Strap of 30% for extraordinary revaluation of real estate is reasonable, the current decline of the real estate market is estimated on average at 15%, says shoemaker.

A common method

In 2015, regional budgets received from the property tax 927 billion rubles, compared with 2011, revenues from this tax increased by 56%, and its share in regional budget revenues rose from 11.4 to 15.3%. It is the result of the transition to market mechanism of calculating property tax, said in mid-March in the state Duma, Deputy Chairman of the accounts chamber Vera Chistova. But the number of taxpayers who do not agree with the cadastral valuation, only for 2015 has doubled, and the special Commission on disputes about cadastral assessment in 2014-2015 has reduced the tax base of the regions tax on property of 4 trillion rubles., indicated Chistov. Commission on disputes about cadastral valuation of real estate to satisfy 70% of complaints against non-state estimates of appraisers, wrote in September 2015, the speaker of the state Duma Sergei Naryshkin, the Duma Committee on property.

Law Ministry not only conveys the right to determine the cadastral value of real estate exclusively by state evaluators, but also involves the introduction of a single methodology of such assessment (now there is no such). In the bill, this technique is not described, but in December she had already been approved by Council for evaluation, said earlier a source in the Ministry of economic development. Methodical recommendations on state cadastral evaluation can be finally approved after the adoption of the Federal law, said the representative of the Ministry.

The document promises to keep the possibility to challenge the cadastral valuation in the pretrial order. To do this, as now, it will be possible through a special fee disputes. Earlier the Ministry of economic development officials said that they are going to exclude this possibility, retaining only judicial order of the appeal of results of the state assessments of real estate. But the new version of the bill provides that the fee will remain the same and in their work will engage the independent evaluators. Their services can be resorted to for challenging the performance of government institutions.

However, private companies in the field of real estate valuation against the reform. “Any monopoly in the market casts doubt on the system of independent rating”, — says the Deputy General Director of company MR Group Andrey Kirsanov. For the consumer it is better if he will be given the chance to assess the state appraiser or the private, he said.