The COP allowed the authorities to challenge the cadastral value of land

The constitutional court on Tuesday partially upheld the complaint of a city administration of Bratsk. The judges recognized the unconstitutional provisions of the law “on appraisal activities”, which set limits for municipalities and forbid them to apply to the courts for such statements. Also, the court also ordered to amend legislation.

The reason for the trial was the complaint of a city administration of Bratsk, Irkutsk oblast. Municipal authorities tried to challenge in the courts the results of the assessment of land, the cost of which was reduced by the Commission by 15 times compared to previous estimates. The new rating directly affects the amount of taxes that were paid to the budget of the owner of the land.

The administration received in the courts failures, as the law “on appraisal activity” allows to challenge the decisions of the evaluation Committee, only the owners of the land. As a result of municipal authorities of the city have filed a complaint with the constitutional court.

Having considered the complaint, the high court came to the conclusion that, in General, the contested norms are aimed at balancing the interests of both the owners and the administration and their complete removal may lead to uncertainty in the calculation of taxes.

A strong reduction of the cadastral value of the land (especially if it is large and used for entrepreneurial activity) affects the amount of taxes paid to the local budget, said the COP.

The decision of the evaluation Committee, adopted on the initiative of the taxpayer affect the rights and legitimate interests of municipalities and the contested provisions of the law will not allow municipalities to appeal the decision of the evaluation Commission in court, said the high judge.

As a result, the constitutional court ruled that if the new land value is significantly below the old, only in this case, municipal authorities have the right to appeal to the courts. According to the decision of the constitutional court and the Affairs of the administration of Bratsk should be revised.

“The constitutional court’s decision correct, — the President of the Guild of lawyers real estate market and the lawyer Oleg Sukhov. Because the cadastral value of land directly affects the rights of municipal authorities and determines the amount of taxes that they receive.”