Last updated April 2019
The transition period to establish a new tax calculation method for property owners has been going on for several years. Now the calculation of property tax for individuals will take into account its cadastral value. Not all regions of the country have yet switched to the new calculation; by 2020 the entire Russian Federation will switch to it.
Today you can find out the exact cadastral value of your property on the Internet if you know the cadastral number and even if you don’t know (at the address):
Other options to find out the cost on the official website of Rosreestr:
If the unified database contains information about the cadastral value of your property, then such information must be provided free of charge within five days from the moment you apply directly to Rosreestr or the MFC for a certificate of cadastral value (if you order a cadastral passport, which also contains a cadastral cost, you will have to pay 200 rubles).
Any real estate, except land, owned by a citizen is subject to property tax. Most often we are talking about:
As you can see, any individual is required to pay tax. Even an individual entrepreneur, if he is not in a special simplified tax regime.
The following table will help you determine the tax rate for your property:
| apartment | 0,1 |
| room as an independent property, that is, with a separate cadastral number | 0,1 |
| residential house, country house | 0,1 |
| unfinished country house/residential house | 0,1 |
| outbuilding with a size of no more than 50 square meters. m for various purposes on IZhM land, dacha, garden plot | 0,1 |
| utility building with an area of more than 50 square meters. m | 0,5 |
| garage, parking place | 0,1 |
| shop, office, catering premises, etc. | 2 |
| other objects | 0,5 |
| Object name | rate size (percentage of cadastral value) |
These rates are basic. But local authorities can reduce them or increase them by more than three times. Here's an example of how things stand with Moscow
You do not need to calculate the exact amount of property tax yourself. It will be indicated on the receipt notice that is sent to all taxpayers. However, citizens strive to know reliably in advance how much they will have to pay for their property. In addition, tax authorities sometimes make mistakes in calculations. Timely detection of inaccuracies allows you to easily solve the problem and avoid unnecessary costs for illegal tax calculations.
To make the transition to the new calculation smoother, a reduction factor is provided, which will gradually increase (for 2015 it was 0.2, for 2018 - 0.6, in 2019 - 0.8, etc.). The formula by which you can calculate the amount of property tax in 2018:
| H = (H1*SK – H2*SI) *K + H2*SI, where |
The reduction factor does not apply to administrative and commercial buildings, public catering and consumer services facilities and other commercial facilities.
For those who don’t want to bother with calculations, an online calculator will help you find out the property tax for individuals starting from 2019.
Some have been paying the new property tax since 2016. The entire tax on the cadastral value will be calculated from 01/01/2020.
But before this date, a transition from inventory to cadastral calculation may occur. This is decided by regional authorities; nothing depends on the taxpayer.
Now in more than 68 regions, tax inspectorates have moved away from inventory value and residents will have to pay a new property tax in 2019
| Republic of Adygea, Amur Region, Arkhangelsk Region, Astrakhan Region, Republic of Bashkortostan, Belgorod Region, Bryansk Region, Republic of Buryatia, Vladimir Region, Vologda Region, Voronezh Region, Jewish Autonomous Region, Transbaikal Territory, Ivanovo Region, Republic of Ingushetia, Kabardino-Balkarian Republic , Kaliningrad region, Republic of Kalmykia, Kamchatka region, Karachay-Cherkess Republic, Republic of Karelia, Kemerovo region, Kirov region, Komi Republic, Kostroma region, Krasnodar region, Kursk region, Leningrad region, Moscow city, Magadan region, Republic of Mari El, Republic Mordovia, Moscow region, Murmansk region, Nenets Autonomous Okrug, Nizhny Novgorod region, Novgorod region, Novosibirsk region, Omsk region, Orenburg region, Oryol region, Penza region, Pskov region, Ryazan region, Samara region, St. Petersburg city, Saratov region, Republic of Sakha, Sakhalin Region, Sverdlovsk Region, Stavropol Territory, Tambov Region, Republic of Tatarstan, Tver Region, Tula Region, Republic of Tyva, Udmurt Republic, Khabarovsk Territory, Republic of Khakassia, Khanty-Mansiysk Autonomous Okrug - Ugra, Chelyabinsk Region, Chechen Republic, Chuvash Republic, Chukotka Autonomous Okrug, Yamalo-Nenets Autonomous Okrug, Yaroslavl Region. | Altai Territory, Altai Republic, Volgograd Region, Republic of Dagestan, Irkutsk Region, Kaluga Region, Krasnoyarsk Territory, Republic of Crimea, Kurgan Region, Lipetsk Region, Perm Territory, Primorsky Territory, Rostov Region, Sevastopol City, Republic of North Ossetia-Alania, Smolensk Region , Tomsk region, Tyumen region, Ulyanovsk region |
| Subjects of the Russian Federation where cadastral calculation is used | Subjects of the Russian Federation where inventory calculation is used |
Before November of each year, the taxpayer receives a notice and receipt for the previous tax year by mail. It must be paid before December 1 of the year in which the notification was received. That is, the scheme remains traditional, only the tax amount will change.
Question:
How will the tax be calculated if the property was purchased in August 2018?
Answer: the tax will be calculated based on the cadastral value only from August, that is, when you actually purchased the property. For the previous period, a notification from the tax office will be sent to the seller, who will have to pay the tax from January 1 until August inclusive.
The calculation of the inventory value differs from the cadastral calculation. The basis is not the types of real estate, but their inventory and cost. Municipal authorities can vary the level of the tax rate within established limits:
If the municipality has not approved the exact rate, then federal fixed rates apply:
The cadastral value is higher than the inventory value and almost equal to the market value. Because it takes into account the location of the property, the year of construction and its area, the type of property and other important circumstances.
Since the cadastral value of housing is close to the market value (in some regions it is only 10-15% lower than the market value), for some homeowners the new tax calculation will be significantly higher than the inventory value. Although other owners, on the contrary, will be more profitable.
The cadastral value will be reviewed in the regions once every three to five years. Therefore, deviations in the discrepancy between market and cadastral values will disappear in the coming years, and the tax will be constantly updated.
To reduce the tax amount, a deduction is provided:
We are talking about square meters subtracted from the total area of the property. These meters will not be taxed.
We remind you: there is no need to make independent calculations. The tax notice will detail the deductions and the final amount to be paid.
Question:
How will the benefit for an apartment or house be taken into account?
Example 1: the property owns an apartment with a total area of 30 square meters. m. Taking into account the tax deduction, we get 30 – 20 = 10 sq. m. Thus, the owner will need to pay tax for only 10 sq. m. m. Converting to ruble value we get: let’s say the cadastral value of an apartment is 900 thousand rubles. This means that the tax is calculated from 300 thousand rubles. (900,000/30 x 10). We multiply by 0.1% (the rate for apartments), as a result, the tax amount for the year is 300 rubles. (300,000 x 0.1%).
Example 2: the property owns a house with a total area of 40 square meters. m. Taking into account the tax deduction, we get 40 – 50 = -10. If the value is negative, the tax rate is zero and no tax needs to be paid. But they won’t give money from the budget. When the tax comes out negative, it is equal to the indicator “0”.
Each owner pays tax in proportion to his share of ownership. However, the deduction is not provided to each owner-shareholder, but for the entire property as a whole.
Question:
Apartment with a total area of 50 sq.m. is in shared ownership of two owners of 1/2 each, how will the deduction be distributed?
Answer: One owner will need to deduct only 10 sq.m. (20 m2/2) as a tax deduction. Thus, he will pay for 25 – 10 = 15 sq. m. A similar calculation will be for the second owner. The cadastral value of housing is 2 million rubles, the area is 44 m2, everyone will have to pay (44m2/2 - 10 m2) per 12 m2. And 1 m2 costs 45,455 rubles (2 million/44), then the tax will be (12 m2 * 45,455 rubles) * 0.1% = 545 rubles. This is the maximum amount, i.e. in those years when the reduction factor is in effect, the tax will be even less.
If there are three or more owners, then the deduction will be divided among the appropriate number of persons, in proportion to the size of their shares.
The biggest impact will be on the wallets of owners of large and expensive offices, shopping centers, public catering establishments and other commercial real estate. For real estate properties, owners are required to pay 2% property tax, without deductions or benefits.
Owners of more modest housing need not worry. The tax amount will be calculated within 0.1% of the cadastral value. By the way, in rare cases, the tax amount may become even less than it was before, before 2015.
Example: there is an apartment with a total area of 50 sq.m. Previously, the inventory value was 186,000 rubles, the cadastral value became 196,000 rubles. The tax rate was 0.1% in both options. Cost of 1 sq.m. at cadastral value = 196,000: 50 = 3,920 rubles. The size of the tax deduction for an apartment is 20 sq.m., which in our case will be 3,920 x 20 = 78,400 rubles. Minus the deduction, we get a taxable amount of 196,000 – 78,400 = 117,600 rubles. Thus, the tax on an apartment with an area of 50 sq.m. will be 117,600 x 0.1% = 117 rubles 60 kopecks. For example, previously the owner paid 186 rubles (186,000 x 0.1%) for the inventory value.
List of benefits for property tax for individuals
Since 2018, a special benefit is available for large families (with at least more children). Parents who own the property can reduce the area of the property depending on the number of children in the family. For each child you can take away:
Example, a family consisting of 8 children has an individual housing construction with an area of 100 sq.m. The cadastral value of the house is 3,000,000 rubles. So, the tax base is: 100 sq. m. "-" 7 sq.m. "X" 8 children "=" 44 sq.m. This means that the tax will be paid on the cadastral value of 1,320,000 rubles.
However, the legislator took into account the possible intentions of our citizens to transfer all their real estate to close relatives who have benefits, in order to be exempt from tax. Now one owner is exempt from tax on only one property. That is, if a pensioner who has a benefit owns two or more apartments, then he is exempt from tax on only one of them. And for the second and others, you will have to pay in full.
If a citizen-beneficiary has different types of real estate, then the benefit is given for one object for each type.
For example, a pensioner owns 2 apartments, 1 country house, a bathhouse and a barn on a summer cottage plot. A citizen will be exempt from tax on 1 apartment, house and barn. And he will pay for a second apartment and a bathhouse.
The types of real estate eligible for benefits are defined by law as follows:
Other types of real estate are not eligible for the exemption.
To receive such a deduction, you should write an application to the Federal Tax Service (), and also attach to it “Notification of selected tax objects in respect of which a tax benefit for personal property tax is provided” (). These documents must be submitted before December 31 of the reporting year (in which the benefit will be applied).
Example: The cadastral value of home ownership was 12,000,000 rubles. The owner considered this amount to be clearly high, since the house was not completed and there were no funds to complete the construction, the toilet was located on the street, the water supply was a well, and the sewage system was a septic tank. From the central networks there is only electricity. Independent accredited appraisers were invited, who indicated in the assessment conclusions the cadastral value of the house in the amount of 3,500,000 rubles. You can go to court with the results obtained.
Local authorities have the right, by their resolutions, to change the tax rate and apply additional benefits for certain categories of citizens. You can find out about the existence of such privileges by contacting the administration at your place of registration.
Owners of real estate and vehicles must report to the Internal Revenue Service if they have not received tax notices.
The absence of a tax receipt indicates that the Federal Tax Service does not have data on real estate and the taxpayer is obliged to provide a report about the property. Such a message is provided one-time until the end of the year following the year of acquisition of the property.
If you have questions about the topic of the article, please do not hesitate to ask them in the comments. We will definitely answer all your questions within a few days. However, carefully read all the questions and answers to the article; if there is a detailed answer to such a question, then your question will not be published.
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A red price will be assigned to housing. Rosreestr specialists will conduct an assessment. You can find out how much housing costs now on the Rosreestr website. If the object is not there, then you can send a request and clarify the cost.
A deduction will be provided for each type of real estate. 10 sq. m. – for rooms, 20 sq.m. – for apartments and 50 sq. m. - for houses.
The authorities have set a transition period for how the tax is calculated. A reduction factor will be applied. Its size will gradually increase, and by 2019 you will have to pay full price for your property.
Important! The tax authorities themselves will not remember about the beneficiaries. Notices are sent along with other citizens. Therefore, you must contact the reception with an application and a document confirming your preferential status. For pensioners, this is a pension certificate, and for disabled people, an ITU certificate.
In 2019, beneficiaries can choose which property to receive the benefit for. If a citizen owns two apartments, then only one of them can be exempt from taxation. It is necessary to select an object and notify the fiscal department. If the object is not selected, then the tax authorities themselves must determine the type of real estate at the highest price.
You must claim benefits immediately. You can return the overpayment, but no more than three years.
The price of objects depends on the market situation and location. The cadastral chamber analyzes prices on the market. The cost cannot be adjusted more than once every three years. True, an exception was made for the capital and St. Petersburg. In these metropolitan areas, market values can be adjusted every two years.
8 factors influencing the cadastral price of housing:
You will have to pay for both the completed object and the unfinished one. Appraisers also take other indicators into account in their work. Employees of budgetary institutions should be engaged in assessment activities. But, since the staff is not yet fully staffed, private appraisers also evaluate.
The cadastral price cannot be higher than the market price. This restriction was established by the Ministry of Economic Development (order No. 358 of 06/07/2016).
Each house will not be considered separately. Objects are grouped together and the overall value is displayed. Real estate is rarely valued individually. It matters what kind of house is built on the site. A house made of brick is more expensive than a house made of wood. The year of construction is also taken into account.
A free calculator for calculating the amount of the fee is available on the Federal Tax Service website. You can calculate the amount of the fee not only for a cottage, apartment or room, but also for a plot of land.
This indicator is set by the local administration. If the object costs up to 500 thousand rubles, then the rate will be 0.1%. For other objects the price will be 0.3%.
The rates for payment of the fee are approved by the head of the administration and published in printed publications for public information.
It is necessary to pay not only for the house, but also for the land on which it is located. To calculate the price of land, it is necessary to multiply the specific cadastral value by the area.
Example. In the Moscow region the price for land is set at 1000 rubles. per one square meter. The area of the plot is 1000 sq. m. m. The market price of the plot will be 1,000,000 rubles.
Since the structure is not separated from the land plot, their cost is added up. If on land with an area of 10 acres there is also a cottage, which is valued at 3 million rubles, as well as a parking space worth 500 thousand rubles, then their total price will be 4,500 million rubles.
It matters what kind of house is built on the site. A house made of brick is more expensive than a house made of wood. The year of construction is also taken into account.
3 indicators that affect the price of land:
A house can be built on a plot of land if such use of the land is permitted.
There are two ways to determine the value of a land plot:
Soil conditions and topography play a role in determining the price of an object.
There are several options for checking the price of a property:
The extract from the Unified State Register is given free of charge, however, if it contains information about the characteristics of the object, then you must pay a fee. The price for an electronic statement is 250 rubles, and for a paper document you need to pay 450 rubles. It is necessary to know the price of the property in order to find out whether the tax liability is fairly established or not. If violations are identified, this will be a reason to challenge the assessment.
You need to pay for the built cottage from the next year after the year of commissioning.
When purchasing a cottage, the fee is distributed between the buyer and seller of the property. The amount of the fee depends on the number of months of ownership of the property.
When a cottage is inherited, tax liability arises from the date of opening of the inheritance. You must pay the fee before November 1, however, tax officials indicate the payment date in the notification. The tax rate is determined by local authorities.
Citizens remain dissatisfied if the tax on an apartment or residential building is overstated. The complaint can be sent to the assessment commission or directly go to court. Only for legal entities compliance with pre-trial order is a mandatory condition, but for citizens it is not.
The value of the property is determined by an expert who has the appropriate license. Based on this expert opinion, the court makes a decision. Litigation is costly, but it is cheaper to spend money on litigation once than to constantly pay inflated taxes.
Disputes are considered according to the rules of the Code of Administrative Proceedings.
As a rule, not only a house is built on the land, but there are also other outbuildings. You will also have to pay for them, and at the market price. If you don’t want to pay, you’ll have to demolish the buildings. There are no other options here.
There will be a transition period until 2020. This is a time of adaptation for the transition to payments under the new rules. For this period, the following procedure is established for calculations:
If the transition rules are not applied, the formula will change. You need to multiply the tax base after deduction by the tax rate in force in the region. This procedure is established in paragraph 9 of Art. 408 Tax Code of the Russian Federation.
Our lawyer can advise you free of charge - write your question in the form below:
In this article we are only interested in private residential buildings located in the Moscow region.
Tax legislation classifies residential buildings as residential buildings located on land plots provided for personal subsidiary plots, dacha farming, vegetable gardening, horticulture and individual housing construction.
Taxable residential buildings in the Moscow region include country houses, so-called “cottages” and “townhouses”.
Tax authorities annually assess taxes on residential buildings for the past calendar year and send tax notices to individuals for payment.
The tax base is determined either by or by residential building.
Until 2015, the tax on residential private houses throughout the country is calculated based on inventory value. Since 2015, Russian regions have independently determined the type of tax base for residential buildings (either according to the inventory or cadastral value of buildings).
The Government of the Moscow Region, by Law No. 126/2014-03 dated October 18, 2014, established that from January 1, 2015, the tax base for the property of individuals will be determined based on the cadastral value.
Tax reform continues in Russia. Innovations concern the procedure for calculating tax fees. By 2020, all regions of the Russian Federation will have to switch to the new system.
We will tell you what the rules of the new Taxation Reform are, what tax will be calculated taking into account the cadastral value and according to what formulas, and also give examples of calculation.
Important: if the region has not switched to a new taxation system, then the tax will be calculated based on the inventory value of the object.
The 4th transition period will continue in 2018. Therefore, experts have identified more detailed formula, allowing for an imperceptible increase in tax revenues - and a soft, smooth transition to the new tax system for Russians.
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N= (N- N inv) x K + N inv =(N- N inv x K def x C inv) x K + (N inv x K def x C inv) N = (N cad – W) x C = (N cad – Ux S w) x C = (N cad - N cad. /S x S w) x C
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Being the owner of a plot of land, a summer house, an apartment, a cottage is, of course, good, considering how expensive real estate is in our country. But on the other hand, it is the owner who bears the burden of maintaining the property he owns. This means that you will have to pay taxes for such real estate. And not even one, but two.
What real estate taxes need to be paid and what the new tax scheme promises to property owners, the magazine site sorted out with the help of specialists.
This article is a reference and information material; all information in it is presented for informational purposes and is for informational purposes only.
Today, a person who owns real estate is obliged to pay two types of taxes annually:
- land tax;
- property tax.
Land tax
Land tax payers are persons to whom the land belongs not only by right of ownership, but also by the right of permanent (perpetual) use, and by the right of lifelong inheritable possession.
Land tax refers to local taxes, which means that the tax is introduced and terminates on the basis of regulatory legal acts of representative bodies of municipalities. That is, the main provisions on land tax are contained in the Tax Code of the Russian Federation, and all the specifics (tax rates, benefits, payment deadlines) are regulated by local laws.
Land tax is paid once a year. The tax is calculated from the cadastral value of the plot, that is, the cadastral value is the tax base.
Tax rates are set by local laws, but there are limits above which land tax cannot be (Article 394 of the Tax Code of the Russian Federation).
So the rates cannot exceed:
1) 0.3% of the tax base in relation to land plots:
- classified as agricultural lands or lands within agricultural use zones in populated areas and used for agricultural production;
- occupied by the housing stock and engineering infrastructure facilities of the housing and communal services complex (except for the share in the right to a land plot attributable to an object not related to the housing stock and engineering infrastructure facilities of the housing and communal services complex) or acquired for housing construction;
- purchased for personal subsidiary plots, gardening, vegetable farming or livestock farming, as well as dacha farming.
2) 1.5% for other land plots.
How is land tax paid?
Tax authorities must independently calculate the amount of tax that must be paid by a citizen - an individual. Tax authorities receive information on the basis of which the calculation is made from the authorities carrying out cadastral registration, maintaining the state real estate cadastre and state registration of rights to real estate and transactions with it.
So, having calculated the amount of tax, the tax authorities must send taxpayers a special notice, which will tell them how much they need to pay for the current year.
Sending a tax notice is allowed no more than three tax periods preceding the calendar year of its sending. Taxpayers pay tax for no more than three tax periods preceding the calendar year of sending the tax notice. Thus, if you did not receive a tax notice, then the land tax can be collected for no more than three years; if the notice arrived, but you ignored it and did not pay, then the tax can be collected for any period of time.
But organizations and individual entrepreneurs are required to independently calculate how much they need to pay.
For some categories of taxpayers, certain payment benefits are provided (Article 395 of the Tax Code of the Russian Federation). For example, the following are exempt from tax:
- individuals belonging to the indigenous peoples of the North, Siberia and the Far East of the Russian Federation, as well as communities of such peoples - in relation to land plots used to preserve and develop their traditional way of life, farming and crafts;
- religious organizations - in relation to land plots owned by them on which buildings, structures and structures for religious and charitable purposes are located;
- all-Russian public organizations of disabled people (including those created as unions of public organizations of disabled people), among whose members disabled people and their legal representatives make up at least 80%, - in relation to land plots used by them to carry out statutory activities, etc.
For other categories, the law provides for a reduction of the tax base by 10,000 rubles. That is, these 10,000 rubles are not taxed. Such a reduction is possible in relation to a land plot owned, permanent (perpetual) use or lifetime inheritable possession of the following categories of taxpayers:
1) Heroes of the Soviet Union, Heroes of the Russian Federation, full holders of the Order of Glory;
2) disabled people with the third degree of limitation of the ability to work, as well as persons who have I and II groups of disability established before January 1, 2004 without making a conclusion about the degree of limitation of the ability to work;
3) disabled people since childhood;
4) veterans and disabled people of the Great Patriotic War, as well as veterans and disabled people of military operations, etc.
Representative bodies of municipalities can expand the list of preferential categories, as well as increase the amount by which the tax base can be reduced in relation to certain categories of taxpayers. So, for example, in Moscow, the tax base can be additionally reduced by 1,000,000 rubles for some taxpayers (disabled people, childhood invalids, WWII veterans, etc.).
Let's give an example - the cadastral value of a plot for personal farming is 1,500,000 rubles (in Moscow). For such a site, the tax rate cannot be more than 0.3% (for example, in Moscow for such sites the rate is 0.3%). Let’s say the plot belongs to a group II disabled person. This means that for him the tax amount will be equal to: 1,500,000 – 10,000 – 1,000,000 X 0.3% = 1,470 rubles per year.
The final amount of land tax will depend on the cadastral value of the land plot. The higher the land value, the more tax you will have to pay.
Property tax
This is another type of tax that individuals - property owners - are required to pay.
The objects of taxation are:
1) residential building;
2) ;
3) room;
4) dacha;
5) garage;
6) other building, premises and structures;
7) share in the right of common ownership of the property specified in paragraphs 1 - 6 of this article.
The tax is paid once a year. The tax base is the inventory value of the property. Bodies carrying out cadastral registration, maintaining the state real estate cadastre and state registration of rights to real estate, as well as technical inventory bodies, are obliged annually before March 1 to submit to the tax authority the information necessary for calculating taxes.
Property tax rates are established by representative bodies of local self-government, but the rates cannot be higher than those established in the Law “On Property Taxes for Individuals”.
So, with a property value of up to 300,000 rubles, the tax rate cannot be higher than 0.1%, with a value from 300,000 to 500,000 rubles, the tax rate is from 0.1 to 0.3%, with a property value of over 500,000 rubles, the tax rate - from 0.3% to 2%.
For example, in Moscow the following tax rates apply for residential premises:
- for property value up to 300,000 rubles – 0.1%;
- for property value from 300,000 rubles to 500,000 rubles – 0.2%;
For property values over 500,000 rubles – 0.5%.
The tax is calculated by the tax authorities, who send out tax notices no later than August 1. Payment of the tax is made in equal installments in two terms - no later than September 15 and November 15.
If the tax is not paid on time, the taxpayer may be held accountable and, in addition to the tax itself, will have to pay penalties. Although some citizens, having lived in their own residential premises for several years, have never seen or received a tax notice. In this case, it cannot be said that the taxpayer is late in paying the tax, and even more so, the person cannot be held accountable. It is the fault of the tax authorities that they did not calculate the tax on time and did not send a notification.
And you shouldn’t be afraid that the tax inspectorate, after recalculating the tax, will send you a notice demanding you pay for the past 5-10 years. As provided by law, persons who are not promptly called to pay the tax shall pay it for no more than three years.
The law provides benefits for certain categories of tax payers. So in accordance with Art. 4 of the Law “On Property Taxes for Individuals” the following are exempt from paying taxes: disabled people, pensioners, WWII participants, certain categories of military personnel, etc.
Real estate tax: what to expect from it
For several years now (since 2004), a bill on a unified real estate tax has been developed. This type of tax will have to replace property tax and land tax. According to some forecasts, the property tax will be introduced no earlier than 2013, while other forecasts say 2015. Such a long period for the adoption of a new tax is explained by the fact that it is necessary to carry out a huge amount of work to develop the draft law itself; this draft must pass through the State Duma, the Federation Council, be approved and signed by the President of the Russian Federation. It is also necessary to make changes to other legislative acts, for example, to the Law on Valuation Activities.
Presumably, the amount of tax will depend on the market value of the property, which will be determined by independent appraisers. We asked experts to comment on how they see the new tax.
Anton Belobzheskiy, General Director of IDT Company:
The new scheme, according to which the tax base will be calculated based on the conclusions of independent appraisers, is fraught with certain pitfalls. Since appraisers enter into contracts with the Federal Tax Service, their opinion will be biased to a certain extent and will be influenced by the position of the customer.
Accordingly, it may again turn out that the size of the tax base will not correspond to the true value of the property. As a result, the Federal Tax Service has leverage over the owners. This may especially affect owners of expensive properties, in particular, nice mansions near Moscow or large plots of land.
On the one hand, when introducing a single tax, a good goal is pursued: to diversify the amount of payments, minimizing the tax burden for residents of Khrushchev, and to increase tax collections at the expense of owners of expensive real estate, who are often wealthy citizens. However, there is a possibility of manipulation on the part of the appraiser and, as a consequence, the emergence of corruption.
Evgeniy Vdovin, financial director of Veles Capital Development:
The real estate tax will replace the personal property tax and land tax. The basis for determining the amount of tax will be the cadastral value of the property as of January 1 of each year. The cadastral value will be determined by the authorities and will approximately correspond to the market value of the property.
The maximum tax rate is expected to be no more than 0.1%. Theoretically, such a tax system will help distribute the burden of paying taxes between persons who own expensive real estate and those with low incomes. But in practice the situation may be different. For example: you live in Sochi, in your small house, suddenly the government decided to hold the Olympics there - the cadastral value of the property will increase, the amount of tax will increase and you will have to pay more. Although you did not receive any material benefit in monetary terms.
The project to introduce a real estate tax provides for the usual benefits for individuals: tax exemptions for the disabled, Chernobyl victims, families of military personnel and others. It is stipulated that pensioners will not pay tax on an area of 50 square meters. m. A number of social deductions are provided. But no specific numbers have been announced yet.
Evgeniy Skomorovsky, Managing Director of CENTURY 21 West:
Discussions about a new law regulating property tax have been going on since the nineties of the last century; the draft law has existed since 2004, moreover, it passed its first reading then. However, there have been and are many discussions around this legislative initiative, so there is no need to say that it will be adopted in this form. Too many nuances arise in our socially heterogeneous country.
There is no doubt that in this case we are talking about an increase in taxes for the majority of taxpayers. However, if you travel outside the central and financially prosperous cities, you will find a large number of supporters of the adoption of this law. For example, in a number of regions the cadastral valuation of land plots is significantly higher than its market value. In fairness, it must be said that even within the framework of this law, the fairness of real estate valuation may raise questions.
Since this tax is local, then, logically, it should benefit taxpayers. For example, in the USA, most payers have no complaints about property tax rates, understanding that the taxes paid actually go towards improving the living conditions of residents: maintaining a high level of the education system, landscaping areas, creating community centers and much more. Knowing the relationship between citizens and officials in our country, it is clear that raising taxes against the background of the existing level of trust, or better yet mistrust, will become another reason for the manifestation of social discontent.
The existence of a single property tax is a common international practice. A general tax allows you to reduce the burden placed on employees of fiscal authorities, as well as make the system more understandable for taxpayers, who are often unable to understand the nuances of tax legislation. For example, for owners of country houses it will become much easier to calculate the amount of tax for the total volume of real estate owned, rather than paying separately land tax, based on the cadastral value of the site, and property tax for individuals for a residential building, based on the inventory assessment.
The ultimate goal of the authorities, of course, is to increase revenues to local budgets and, due to this, reduce the regions’ dependence on government subsidies.
Denis Izmailov, expert on suburban construction CENTURY 21:
According to experts from the Ministry of Finance and the Ministry of Economic Development of the Russian Federation, who are working in detail on this issue, developing the principles, criteria and rates of the tax base, the transition to the new tax will occur in stages in 2010-2012. This is due to the fact that in the Russian Federation the work on cadastral registration and cadastral valuation of all real estate objects has not yet been completed, and the professional valuation market is not sufficiently developed. In addition, experts unanimously note the need for a detailed study of the issue of applying a reduction factor for owners with low current incomes (pensioners, preferential categories of citizens), so that it does not work out “as always.”
The real estate tax involves building the tax base in accordance with the market value of real estate, which will lead to a fundamental increase in tax payments in favor of the state.
The exact rates of the new tax have not yet been determined, but, according to experts, property payments as a result of the innovation could increase hundreds of times.
Summary
Today it is clear to everyone that there is no escape from paying taxes on both land and property. Moreover, its burden will only increase as real estate prices rise. Whether it is better to pay one tax instead of two is a controversial issue. At first glance, one is better than two, but the main question is the amount of tax. According to existing practice, any gestures of legislators are costly for Russians. By increasing the property tax under any pretext, the treasury will receive billions, but what will the Russians get?
