Although nominally the cadastral value of real estate should roughly coincide with its real (market) price, in practice these figures usually vary greatly. ExProf employees will promptly and inexpensively calculate the actual value of your property, taking into account many factors and substantiate their calculations with relevant documents. Based on the information received, you will be able to estimate how much you can save by reducing tax or rent payments.
The real estate valuation system has been constantly changing lately, so the ordinary owner of a house, apartment or land plot keeping track of all the innovations is almost impossible. The specialists of our company are always aware of all changes in legislation and therefore will be able to offer the best solution to your problem.
There are two ways to try to reduce the cadastral value of real estate on your own:
In order to save time on the issue and money on legal fees, it is preferable to try to solve this problem by the first method. To do this, you will need to submit the following documents to the commission:
In this case, it will be enough to pay only the services of a notary and appraisers. The result of the commission's decision must be submitted within one month. If the conclusion is negative, you can go to court.
By the way, before trying to reduce the cadastral price of real estate, you should compare it with the market price. In some (albeit rare) cases, the real cost of housing or land is lower than the cadastral one.
However, you can save yourself from all these troubles if you contact the ExProf company. Our experts will assess the feasibility of this event and limit your communication with officials.
When contacting ExProf, the entire range of services to reduce the cadastral value of your property will be provided with high quality and at an affordable price. You can clarify the amount of upcoming costs with our specialists, but in any case it will turn out to be cheaper than paying for the services of notaries, appraisers and lawyers.
In addition, the employees of our company have extensive experience in solving such issues and are really interested in a positive result. In addition, you can use free consultations our professionals and not waste your time studying constantly “improving” laws.
Olga Golovetskaya January 28, 2020/Back in 2017, amendments came into effect that change the procedure for reducing the cadastral value. The project marked the beginning of the preparatory phase for an extraordinary wave of real estate revaluation from 2020.
The owners did not have time to get used to new system taxation related to the cadastral value, as the government has prepared amendments that again affect the area of the real estate cadastre. Recall that since 2014, each property has been assessed by municipalities, and its value is entered in a single register.
The cadastral value is necessary for any monetary transactions with the property. From it are calculated:
The most interesting thing is that the assessment was carried out without the participation of citizens, i.e., it was carried out independent experts hired by local governments. The cadastral value itself is several times higher than the inventory value, but many owners began to complain about too high figures. Court hearings related to the challenge are still taking place. The new amendments are intended to simplify this process and bring order to the evaluation area.
Now citizens have the right to decide on their own whether to go to the commission or immediately go to court. As practice has shown, officials very rarely agreed with the arguments of the owners and in most cases refused to revise the cost. The list of documents that will be needed to apply to the commission has remained virtually unchanged. Only instead of an extract from the abolished USRR, you will need a similar document from the USRN. The complete set of documents is as follows:
Why was the My Documents Multifunctional Center invented and what operations does it perform: the MFC is initially an intermediary between the owner and state ...# Cadastral works To file a lawsuit, in addition to the above documents, you must attach an expert opinion on the compliance of the value assessment with the legislation of the Russian Federation and other standards.
The last amendment is related to the regulation of the activities of appraisers. Previously, municipalities held a competition for the selection of independent experts, who determined the cadastral value in the first wave of assessment. Now specialized budget institutions which are entrusted with the obligation to independently conduct an assessment without the participation of third-party experts. Also, in these structures, citizens will be able to get clarifications about determining the value of their property. But when challenging the institution, it is not in the right to carry out an examination. To this end, the owner must contact independent specialists.
To prevent violations of the rights of citizens, the new bodies will be supervised by Rosreestr.
Hello. I have a problem, please help me to sort it out. I own a building that is included in a special list and the tax is calculated from the cadastral value. The tax through the court was reduced two years ago. The bottom line is that according to the documents, my building is considered a commercial facility, but there is only a small part of it under trade, the rest are garages. In 2019, I divided this building into 3 separate rooms. Each room has its own cadastral number and cost. I want to sell one of these premises. However, the information on the Rossreestr website is relevant that I again have one whole building and a new cadastral value has been assigned to it many times more than the previous one. Now I have four objects on one address instead of one. What should I do? How will I be counted? Please help with advice.
In 2020, it is planned to challenge the cadastral value of a group of real estate objects. Please advise when compiling terms of reference to the contract (reports on the assessment of market value) should be indicated 135-FZ in accordance with which the assessment will be carried out, or prescribe 237?
In 2019 Changed to unilaterally type of permitted use of the land plot according to the document (at the same time, VRI-for individual housing construction, and according to the document - for housing construction), while its cadastral value increased significantly, I assume that it is associated with a change in the VRI according to the document. At the same time, in all the documents-foundations over the past 20 years, the VRI has not changed for individual housing construction. How to correct the VRI according to the document from ZhS to IZHS and, accordingly, reduce its cadastral value.
The second part of the "amendments" is a dead poultice. The right to appeal, immediately to the court, was before. The devil is in the details. The list of documents has grown. An opinion and a market value report made by an "independent expert" is worth big money and more than covers the benefit of the revaluation. And it is only valid for 5 years. An indication that, they say, earlier, the assessment was carried out by "independent" experts is a deception. There was a competition of organizations for the right to re-evaluate, it was "won" by the Federal BTI, a government agency (which was not prohibited), and already it hired "independent" experts who were employees of the BTI, but, allegedly, the re-evaluation was carried out as private individuals. It is clear to the fool that the money was transferred through the affiliated BTI, which, only a part of it, paid its pocket independent experts. So, NOTHING has changed. It got worse. Now government agencies do not need to hide anything.
Hello. The cadastral value of land for 2017 increased by 2325 times. I found out about this at the beginning of 2018 and immediately made an independent revaluation of the land and approved it at the Roseestra commission. The changed figures were accepted by the commission, where they wrote about the difference from the market more than 30. The revaluation was carried out for 2017. - just for that tax period. I sent documents to the tax office with a request to recalculate the tax for 2017. A refusal came. Based on the fact that this is all approved on January 1 of the year in which I did the revaluation. The new tax calculation will come only in 2019 for 2018. I do not want to pay for air and such an assessment of the land by the local authorities. What to do and how to dispute the tax for 2017?
Question: it is now the end of 2018. They put it up and I paid the land tax for 2016. The cadastral value was very much overstated. Now there has been a state revaluation and from next year the cost is reduced three times. Question: At the end of 2019, I will receive the tax for 2017, and will it still be according to the old calculation? After all, in 2017 the cadastral value was still old., Or will they already be charged according to the new one? If the old way, is it possible to challenge it?
The cadastral passport is one of the most important documents for property. After all, it not only indicates basic information on real estate, but also its cadastral value - the price set by the state. This figure is one of the main parameters involved in taxation, purchase, sale and other transactions related to money.
In this article, we will talk about how to change the cadastral value of an apartment, house or plot, as well as answer the question "How to reduce the cadastral value if it is indicated correctly in the passport itself?"
To begin with, let's consider the reasons why the cadastral value of an apartment is generally changed up or down. They can be related both to the personal interests of the owner of the property, and to simpler legal reasons:
Information!
Anyone can apply for a property revaluation. The only condition is the existence of certain justifications. That is, you will have to prove that your opinion that the price is too high or too low is not groundless.
To do this is quite simple. You will need to follow a very simple instruction:
As you can see, changing the cadastral value is a fairly simple process. But this is ideal - in practice, sometimes you have to carry it out on your own or even through the courts.
Checking the cadastral value, although it is the work of civil services, is also possible by the efforts of the owner of the living space. In order to fulfill it, you can contact a special appraisal office that has all the necessary rights and licenses for real estate appraisal. It is quite simple to do this - you will only need to contact one of these organizations, agree on the time of the check, and pay for the services. You will need to have only a passport, documents for real estate and, if necessary, title papers.
On the appointed day, an engineer will be required to come to you, who will take the necessary measurements, draw up a plan and at the same time indicate the correct cost of the living space. After that, you will be given a package of papers, certified by the signature of a specialist and the seal of the appraisal bureau, which you can use as documents establishing the real cadastral value. At the same time, changes in the cadastral passport still need to be made, since government papers must also contain correct information.
It often happens that Rosreestr either does not admit mistakes at all, or refuses the applicant's request for rechecking, citing insufficiently substantiated reasons or not naming them at all. If you submitted an application and papers in accordance with all the rules, AND you really have grounds for reducing the cadastral value, then such a refusal will be unlawful, and you will have to fight injustice. And it can be done with the help of the court.
To force public services In order to conduct an audit, you will first need to report a violation of your rights to the court. You can do this with a claim. In it you will need to specify:
Once you've completed your claim, you'll need to file it correctly. You can do this on your own by personally contacting the court you need, with the help of a representative who has a power of attorney from you, or through the Russian Post by sending an application by registered mail.
Information!
After receiving the statement of claim, the court will initiate proceedings, during which you will need to prove that the refusal of Rosreestr is not justified, and you have good reason to believe that the cadastral passport was drawn up with errors. In this case, you will need to somehow prove your position, which is very difficult to do, and that is why we recommend that you hire a lawyer in advance. If successful, you will be issued a resolution with the help of which it will be possible to oblige Rosreestr employees to reassess real estate. If unsuccessful, you will have 10 days to file an appeal.
Now let's answer the question "How to reduce the cadastral value on your own?". Such an operation is needed for those who do not want to pay the tax or its size seems unfairly high. The answer to this question is simple - to reduce the cost of land, houses or apartments in the cadastral passport, reduce its actual value. Recall that property prices are mainly affected by:
Information!
Some of these parameters cannot be changed in any way, but most can still be changed. Reduce the area of the property by redevelopment, demolish extensions, replace some elements with older ones. In other words, worsen the condition of the property. At the same time, such work will also turn out to be very costly, and re-evaluation and ordering papers are far from free. Therefore, it is worth considering “Is it worth taking any actions to reduce the cadastral value on your own if it is measured correctly?”, Since this operation itself is extremely unprofitable.
Federal Law No. 334-FZ, which entered into force on January 1, 2019, allowed companies and individuals to reduce be tax payments by challenging the cadastral value of their property. Moreover - now the revision of the cost will allow you to return and recalculate property taxes within a few years at once. We tell you how to dispute the value of real estate and how this will affect your tax liability.
What is the cadastral value of housing
The cadastral value of a dwelling is the value of an immovable property, which is determined by means of a state appraisal, primarily for the purpose of calculating taxes.
The cadastral value of housing depends on its area, the purpose of the object, the material from which the object was built, the year of construction and commissioning, economic situation in the region and some other factors.
Rosreestr is responsible for assessing and establishing the cadastral value. The final estimates are entered by Rosreestr employees in the USRN - the Unified State Register of Real Estate).
The purposes of calculating the cadastral value:
calculation of the amount of property tax;
calculation of the amount of tax in the case of purchase and sale / rent / exchange of housing;
registration of the right of inheritance to housing;
determining the price when exchanging this object for an equivalent one;
drawing up a contract of donation for real estate.
Why dispute the cadastral value of real estate
List of regions where real estate organizations and individuals are taxed at the cadastral value, growing every year. In 2019, the property of organizations is taxed at the cadastral value already in 74 regions, and the property of individuals, including individual entrepreneurs, in 70 constituent entities of the Russian Federation.
Challenging the previously approved cadastral value can save companies and individuals significant money - after all, the lower the value of the object, the lower the taxes payable. Moreover, since 2019, the disputed value applies not only to future tax periods, but also to previous ones.
The revision of the cadastral value will reduce the following taxes:
How to dispute the cadastral value
The procedure for contesting the cadastral value of real estate is established in accordance with Art. 22 of the Federal Law of July 3, 2016 No. 237-FZ "On the state cadastral valuation". The cadastral value can be challenged by interested organizations and individuals - for example, taxpayer owners or tenants / buyers of real estate.
An application for contesting the cadastral value can be submitted either to a special commission under Rosreestr, or directly to the court. Mandatory pre-trial settlement of the dispute in such cases is not provided.
You can apply to the commission through the Rosreestr department or a multifunctional center (MFC). Also, the application can be sent by mail or via the Internet, including through the public services portal.
If an organization or individual decides to dispute the cadastral value through a commission, it will be necessary to assess the market value before submitting an application disputed object. The following documents will need to be attached to the application:
Market value assessment report on paper and electronic media.
An extract from the USRN on the cadastral value of the property containing information about the contested results of determining the cadastral value.
A copy of the title document for the property.
Without these documents, the application will not be considered.
After receiving the entire set of documents, the commission will send a report on the assessment of the market value to Rosreestr within three working days. The application itself will be considered no more than 30 days from the date of its receipt. Based on the results of the review, the commission will make one of the following decisions:
the decision to determine the cadastral value of the property in the amount of its market value;
decision to reject the appeal.
In the second case, the applicant will have the right to challenge the decision of the commission in court.
Judicial contestation of the cadastral value
You can file a dispute with the cadastral value directly to the court, bypassing the stage of its appeal to the commission. The procedure for challenging the cadastral value in court is regulated by Chapter 25 of the Code of Administrative Procedure of the Russian Federation.
When filing a lawsuit, you need to pay a state fee. The state fee is:
300 rubles - for individuals (including individual entrepreneurs);
2000 rubles - for organizations.
Along with the statement of claim, the court must submit:
extract from the United state register real estate about the disputed cadastral value of the object;
a copy of the document of title to the property (for example, a copy of the certificate of ownership).
Documents that prove the unreliability of information about real estate used in determining its cadastral value are also submitted to the court. This fact can be proved by documents that determine the correct area of the property, its actual location, purpose and accident rate. Here you can attach documents about the hidden shortcomings of the property or information about when it was last overhauled.
If, prior to appealing the cadastral value, the applicant has established the market value of the property, he also submits the appraiser's report to the court. If a market price the object was not installed, the report is not needed. It is also not necessary to provide documents and materials confirming compliance with the pre-trial procedure for resolving the dispute.
The court will review the cadastral value in the following cases:
if the applicant proves that false information was indeed used in determining the value of the object;
if the applicant establishes the market value of the property and confirms this fact with a proper appraiser's report.
The dispute must be considered by the court within two months from the date of receipt of the statement of claim. In complex cases, the period may be extended for another month (Article 141 of the Code of Administrative Procedure of the Russian Federation).
How will contesting the cadastral value affect taxes?
Until 2019, the new (disputed) value of real estate was applied for taxation from the beginning of that tax period in which the appeal was filed. Per previous years the tax base has not been revised. Accordingly, overpaid taxes were not subject to recalculation.
Suppose an organization has paid property tax at the cadastral value since 2015. She filed an application to challenge the value of the property only in 2018. In the same year, the application was granted. Until 2019, the tax on new value the organization could count from the beginning of 2018. The overpayment for previous years remained in the budget.
Federal Law No. 334-FZ dated August 3, 2018, which entered into force on January 1, 2019, changed this procedure. Now the disputed information about the value of real estate is applied from the very beginning of the taxation of the object at the cadastral value.
For example, an object has been taxed at the cadastral value since 2015. An application for contesting the cost is submitted and satisfied in 2019. According to the new rules, the revised cost is applied for tax purposes not from 2019, but from 2015. Accordingly, if as a result of the challenge the cadastral value has decreased, then for previous years the organization has an overpayment.
At the same time, taxes are subject to refund or offset, from the moment of payment of which no more than three years have passed (paragraph 7 of article 78). That is, all taxes paid for the period 2015-2018 are subject to recalculation, if 3 years have not yet passed from the moment they were paid. If you submit an application to contest the cost in 2020, the taxes paid for 2015 will no longer be returned or credited.
The cadastral value is a calculated value that reflects the idea of the value (utility) of a land plot with its existing use. The fundamental point in this definition is that the assessment of the cadastral value is a reflection of the existing use of the land, and not any other.
The cadastral value of the land plot is necessary for calculating the taxable base. The tax base for land tax is defined as the cadastral value land plots as of January 1 of the year that is the tax period.
The calculation of the cadastral value of a land plot takes place at least once every 5 years and no more than once every 3 years, when there is an assessment (revaluation) of the territories selected by the State Real Estate Cadastre (GKN). After that, the new cadastral value is set for the next accounting period, until the next audit.
Based on the data obtained, the market value of the object is determined, which, one way or another, depends on the cadastral value. Also, there are calculators on the Internet for calculating the cadastral value of a land plot, however, such data should not be taken as reliable. According to my observations, the cadastral value of the land plot updated in 2015 has become 30-300% higher than the market value.
However, both the owner and the tenant have the legal right to reduce the cadastral value of their land.
Now you are probably thinking, why should I reduce the cadastral value if I am a tenant of a land plot and pay only rent for it, and the tax is charged only to land owners? The answer will be below. In the meantime, let's analyze the decrease in the cadastral value of a leased land plot; consider the example of IP Solnyshkina N.N.
IP Solnyshkina N.N. is a tenant of a land plot with an area of 16,382 sq.m. category of land: land of settlements, permitted use: industrial purpose of municipal property. The lease under which she pays the rent contains provisions for a baseline for calculating rent.
These include:
It is the rate, and not the base rate, that determines the calculation of the rent for 1 sq.m., which can be revised by the owner - the municipality. As a rule, in lease agreements for a land plot by the owner (administration) represented by the Department of Property and Land Relations, there is necessarily a concept of a unilateral change in rent.
A real example from practice: item 3.3. lease agreements - the amount of the annual rent may be reviewed by the Lessor unilaterally in connection with decisions of state authorities Russian Federation and (for example) the Lipetsk Region, the Lipetsk City Duma centrally establishing appraisal zones, coefficients for indexing land tax rates, basic rental rates with a written notice to the Lessee.
Step 2 - compare market and cadastral value
To compare the market value of our land plot and the cadastral value indicated in the extract, order in an independent appraisal company a report on the assessment of the market value of the land plot as of the date indicated in the extract from the USRN (for example, as of 01/01/2018).
To calculate the market value, appraisers use a specific indicator of the cadastral value of a land plot. The indicator depends on the category, purpose, general characteristics of the area, location and infrastructure (distance from the center, accessibility of transport, etc.). General characteristics plot are summarized, fit into formulas and provided as a cadastral value.
The formulas are different. For the cadastral valuation of a site with an encumbrance, a formula with a reduction factor is used, since the benefit derived from them is reduced. The specific indicator is used to form new horticultural or summer cottages. The cadastral value of such plots is determined by multiplying the average value for the garden society specific indicator to the area of the land.
A decrease in the appraised value of a land plot is possible if:
- The fact of spoilage of the fertile layer was recorded;
- In the massif there is a ravine, a cliff or a swamp;
- etc.
When IP Solnyshkina received the report, he surprised her very much, because. in the report, the market value of the land plot was 14 million rubles, while the cadastral value was 38 million rubles. It is obvious that all the rent payments that the IP paid were overstated.
- Apply to the owner of the land plot to revise the cadastral value (long and inefficient);
- Go to court (our option)
Step 3 - understand the law
Let's start with the following:
- By virtue of clause 7 of part 1 of article 1 of the Land Code of the Russian Federation, any use of land is carried out for a fee, with the exception of cases established by federal laws and laws of the constituent entities of the Russian Federation.
- In accordance with paragraphs 1, 5 of Article 65, paragraph 2 of Article 66 of the Land Code of the Russian Federation, the forms of payment for the use of land are land tax (before the introduction of real estate tax) and rent, for the purposes of determining which the cadastral value of the land plot is established by conducting state cadastral valuation of land.
- In accordance with the provisions of Article 66 of the Land Code of the Russian Federation, in cases where the market value of a land plot is determined, the cadastral value of this land plot is set equal to its market value (clause 3).
- By virtue of Article 3 of the Law on Appraisal Activities, the market value of an appraisal object is understood to be the most probable price at which this appraisal object can be alienated for open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and any extraordinary circumstances are not reflected in the value of the transaction price.
- According to article 24.18 federal law No. 135-FZ of July 29, 1998 "On valuation activities in the Russian Federation", the results of determining the cadastral value can be challenged by individuals and legal entities in court by reviewing them on the basis of establishing its market value in relation to the real estate object on the date as of which its cadastral value was established, if these results affect the rights and obligations of these persons. The results of determining the cadastral value of a land plot can be challenged in court by filing an application for revision of the cadastral value. The basis for filing the said application may be, among other things, the establishment of its market value in relation to the property on the date as of which its cadastral value was established.
Conclusions: The current legislation provides for the establishment of the cadastral value of a land plot equal to the market value, if such is determined, and in themselves the reliability of the cadastral value of a land plot and the legality normative act its approval is not in dispute in this case.
Step 4 - File a lawsuit
Where to file a claim (jurisdiction)?
We will write - Administrative statement of claim on establishing the cadastral value of a land plot equal to its market value. The answer we are interested in is found in this document: Decree of the Plenum Supreme Court RF dated 06/30/2015 N 28 "On some issues arising when the courts consider cases on contesting the results of determining the cadastral value of real estate objects" (as amended on 06/30/2015).
Everything is clear, we will write a statement of claim to the Lipetsk Regional Court, we will be guided by the articles described above, plus we will look at the Code of Administrative Procedure.
The claim was written, the state fee in the amount of 300 rubles was paid, now we need to send our claim to the defendants - this will be the government of the Lipetsk region (FSUE Cadastral Chamber of Rosreestr) - they sent it. Now the matter is small, we send the case to court. With a positive development of events, the court will accept our claim for consideration and appoint an examination based on the report received from independent appraisers, which will show the final cadastral value of our land.
Results
- In the case of IP Solnyshkina, it was possible to reduce the cadastral value by 43% (it was 38 million - it became 14).
- The court decision in our case was automatically sent to all persons involved in the case, and the owner, on the basis of this decision, will be required to recalculate the rent in the context of the reduced cadastral value.
- IP Solnyshkina - satisfied.
How to reduce the cadastral value of the land in the property
We will consider the decrease in the cadastral value of our own land plot using the example of Meridin LLC.
LLC "Meridin" is the owner of the land category of land: land of settlements, permitted use: industrial purpose area 7,700 sq.m., LLC is engaged in the sale of medical products + warehouse activities, i. leases storage space in warehouses.
Every year, our LLC is obliged, as the owner of an industrial land plot, to pay a huge land tax. How the land tax is calculated, I described above. So, Gennady Vasilyevich, the founder of Meridin LLC, thought about high costs and instructed his lawyer to reduce annual costs.
Procedure
- To begin with, as described above, we (representatives of Meridin LLC) go to the local multifunctional center and order an extract from the USRN, which will indicate the cadastral value of our site. Having received an extract, we learn that the cadastral value of our site is 18,000,000 rubles, the date of determining the cadastral value is 10/20/2016, the date of entering information about the cadastral value into state cadastre real estate - 24.10.2016
- Further, we, like our business partner IP Solnyshkina, order a report on the market value of the land. And what do we see, the market value of our site is 7 million rubles (like this), and we pay tax from 18 million rubles.
- Having looked through the legislation and consulted with IP Solnyshkina, the lawyer of Meridin LLC understands that the procedure for contesting the cadastral value of a land plot for an LLC differs from the procedure for contesting for an individual entrepreneur (i.e., for individuals). The differences are that for an LLC, you must first contact the commission for the consideration of the cadastral value of Rosreestr. We turn to the commission, attach our report and, of course, they answer us with a refusal, well, of course.
- We take a refusal + a report + a statement of claim (described above) + a state fee (2000 rubles) + our certificate and send all this wealth to the Regional Court. The order of the case is slightly different, but the end result is the same.
Results
As a result of our appeal to the court, taking into account the forensic examination, the cadastral value of the land plot was reduced from 18 million rubles. up to 7.7 million rubles That is almost 2.5. times!
A copy of the court decision to reduce the cadastral value of the land plotHow else can you reduce the cadastral value
- Reduce the area of land;
- Change the category of land.
Study the legislation, defend your rights and write comments - we will discuss.
