In the state Duma warned about the risk of a sharp rise of property taxes


The Russians will not receive protection from the sharp increase in taxes on land and apartments in the case of the adoption of the governmental draft law changing the system of assessment of property of citizens and companies — their ability to challenge the cadastral valuation, which is accrued property taxes, in contrast, will be reduced, concluded the state Duma Committee on land relations.

The government’s proposed changes “do not solve none of the most pressing issues that currently face physical and legal persons”, but only change the status of real estate appraisers — pass functions of cadastral assessment from private institutions to state, this conclusion of the state Duma Committee on land relations on the new draft law on the cadastral valuation. The Committee adopted a conclusion on Wednesday, may 31.

The new draft law on state cadastral evaluation was submitted to the Duma by the government on may 4, now he is preparing for the first reading, which the Duma Council scheduled for June — the last month of the current convocation of the chamber. In February 2016 after many owners are faced with multiple increase of the cadastral value of the property, President Vladimir Putin instructed to optimize the order of payment of citizens for the land tax. Since the introduction in Russia of Institute of a cadastral estimation of real estate “is almost universally noted mass violations of human rights a significant overestimation of the cadastral value of the immovable property in comparison with market price of this property and as a result, significant and sharp increase in the tax burden for some property taxes (including land tax)”, writes in his report of the land Committee of the state Duma.

Assessing the bill of the government, deputies proceeded from the fact, as executed by officials of the orders of Putin, explained in the conclusion. Many provisions of the bill contradict these instructions, follows from the document. In particular, it is not executed the order of Putin to unify the frequency of cadastral valuation in all territory of Russia: in fact, the bill reproduces existing norms of the law, which specifies that the cadastral assessment in the regions is carried out not more often than once in three years and not less than once in five years, and in the cities of Federal significance — not more than once in two years, indicates the Duma Committee. The lack of uniform timing of determination of cadastral cost “can lead to a situation of significant increase in tax amounts payable in the short term”, warn MPs. In their opinion, to overestimate the estate throughout the country, it is advisable every five years.

The history of the issue

In 2014 in Russia at the regional level gradually began to introduce tax on property of organizations of the cadastral value (Moscow was the first who introduced a tax on commercial and office real estate with the cadastral value), and in 2015 28 regions have begun to calculate the tax on the cadastral value and on property of physical persons (apartments, villas). In most cases this led to significant — sometimes tenfold — increases the tax base, because the cadastral value is usually much higher used before inventory. Calculated under the new rules for 2015 tax year will pay no later than October 1, 2016. All the regions should move to levy property tax on the cadastral value by 2020. The owners actively challenge the overestimated cadastral estimation, using existing mechanisms: for example, according to the chamber, in 2015 the number of appeals to the Commission on consideration of disputes on results of definition of cadastral cost has doubled (to 31.3 thousand applications for 64 thousand objects), and as a result of the revised valuation by decision of the commissions and the courts, the tax base for 2014-2015 is decreased by 4 trillion Approved by the government law Ministry sends the right to determine the cadastral value of real estate exclusively by state appraisers and involves the introduction of a single methodology of such assessment (now this no, what cadastral valuation often looks inconsistent and biased). 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. Against the monopoly of the state appraisers was organized by business organizations.

In addition, Putin has instructed to establish uniform requirements for the cadastral assessment and to ensure compliance on the entire territory of Russia, remind the deputies. The draft law of the unified methodology of cadastral appraisal as one of the principles of such assessment, but the methodology is — in the opinion of the Committee of the Duma, the main legal act regulating the evaluation in the document is not described. To develop and approve methodological instructions on cadastral valuation needs authorized Federal body, the Committee specifies. But members doubt that such a document will be required to follow all evaluators — “due to the legal nature” of the act.

The bill does not contain provisions on the liability of any of the bodies for the results of the state cadastral assessment, although Putin has charged to strengthen the responsibility of the appraisers for their work, the Committee noted. The ability to appeal the results of the cadastral valuation bill not only does not expand but even reduce, the detention deputies. In particular, the document excludes the possibility to challenge certain gasienica the cadastral value of the property due to the unreliability of the information, specified in the conclusion. “This significantly reduces the legal guarantee of the right holders of real estate in terms of achieving equity in cadastral valuation”, — said the Deputy. In addition, in all cases for the revaluation of the cadastral value of the bill requires the assessment of the disputed market value for the account of the owner, said the authors of the conclusion.

The vast majority of Russians the questions of the cadastral value of their property are of concern primarily in terms of the amount of property taxes, the Committee has indicated. But the bill is not correlated with the General principles of tax law, concluded the MPs. In particular, the document does not allow for any universality or equality of taxation, because it involves the cadastral assessment of only the property that is included in the state cadastre, and does not require appraisers with the duty to revise the cadastral value of similar properties, if was revalued value of at least one of them. Will not provide the bill and compliance with the principle of economic feasibility of tax, as a duty to prove the correctness of the cadastral assessment proposes to impose on property owners.

In General, the Institute of cadastral valuation of real estate requires fundamentally different approaches, according to deputies, but under the current bill provisions on the submission of observations on cadastral valuation and the procedure for error correction require the Russians to the presence of special legal knowledge.

Despite sharp criticism, the Committee on land relations still supported the bill — with the condition of finalization for the second reading. Before this conclusion on the controversial project was approved and the Committee on local government. This Committee also supported the government initiative, although and believed it was “not justified” because the creation of a new system of cadastral valuation of real estate will require regions cost 1.1 billion rubles (an average of 13 million rubles. in each region annually). A profile on this bill the Committee of the Duma under the civil legislation of its relationship to the project has not yet determined.