Real estate tax: why it has grown and how to deal with it

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Briefly about the recent changes in tax legislation: why the property tax has increased, how it is now calculated and how to reduce it by challenging the cadastral value.

What has changed at all?

Recently, many have received notifications about the payment of real estate tax. But not everyone understood why there are such exorbitant figures in them. It's all about changes in tax legislation.

On January 1, 2015, a new “Personal Property Tax” entered into force. According to him, all regions by 2020 will begin to levy taxes on real estate, based on its cadastral value. Previously, tax was calculated at inventory value.

The cadastral value is considered to be as close as possible to the market value, while the inventory value is the opposite. If the tax calculated according to the new system turned out to be higher than calculated according to the old one, then it is valid. If the system has been introduced in your region since 2015, then in 2016 you pay 20% of the new tax, in 2017 - 40%, in 2018 - 60%, in 2019 - 80%, in 2020 and subsequent years - 100%.

What is this cost and what is the difference between them?

- This is the cost of housing according to the BTI estimate, based on factors important for the maintenance of real estate. These are the area, utilities, quality of construction and year of construction, as well as the cost of building materials and services at the time of assessment.

- the cost of housing according to the state assessment, obtained on the basis of market information, including for tax purposes. It takes into account the condition of the housing stock, location, infrastructure and other significant factors.

Inventory value is often below market value. The cadastral value is provided to match the market price as closely as possible. But due to the fact that the cadastral valuation is carried out in large quantities, and not for each specific property, it may be higher than the market one.

From 2020, tax collection on inventory value is carried out.

How to find out the cadastral value?

• Look in the cadastral passport. If it was issued after 2012, a new one can be obtained at or.
• Order a cadastral passport or an extract from it. It is chargeable and suitable for those who need a legally relevant document.
• View in open data on the Rosreestr website. This can be done using a form or Information taken from the public domain is for informational purposes only and has no legal effect.

State cadastral revaluation of land is carried out regularly. Please refer to online sources for the most up-to-date information.

How to reduce the cadastral value?

The cadastral value can be challenged in two cases:

• if incorrect information was used in the appraisal of the property;
• if the cadastral value is higher than the market value.

If one or both grounds are present, you can cadastral value in several ways:

• Through the commission. Send to the Rosreestr commission an application for revising the cadastral value. Attach documents confirming the existence of an error (official papers, which contain the correct information about the property, or an independent assessment of its value).
• Through the court. To do this, a statement of claim is submitted to the local branch of Rosreestr, responsible for the cadastral valuation of your real estate, with all the necessary documents attached.

Details can be found in the explanatory video of Rosreestr.

For eight months of this year, 90% of the plaintiffs in disputes over the determination of the cadastral value in court.

What are the tax rates?

The tax rate is the percentage of the cadastral value of the property that you have to pay to the state.

You can inquire for specific information for your region.

For example, the following tax rates are determined for an apartment in Moscow:

• at a price of up to 10 million rubles - 0.1%;
• from 10 to 20 million rubles - 0.15%;
• from 20 to 50 million rubles - 0.2%;
• over 50 million rubles - 0.3%;
• over 300 million rubles - 2%.

What are the deductions?

The deduction in this case is the established size of the area of the property, which is not taxed.

When calculating the tax based on the cadastral value, the following deductions are provided:

• for rooms - 10 square meters;
• for apartments - 20 square meters;
• for residential buildings - 50 square meters.

Larger deductions may apply in your area.

If the size of the property is less than the amount of the deduction, the latter is not taken into account when calculating the tax.

What about the benefits?

The benefits have not changed. The following are exempt from tax on one property:

• pensioners;
• participants in the Great Patriotic War and military operations;
• Chernobyl victims;
• disabled people of the first and second groups;
• servicemen who have served 20 years or more;
• transferred to the reserve with a similar experience;
• other categories provided by law.

How to calculate tax yourself?

You can do this on the website by specifying the cadastral number of the property.

Who has the change already affected?

This year, receipts with new taxes for 2015 will come to residents of the following regions:

• Moscow;
• Moscow region;
• Republic of Bashkortostan;
• The Republic of Buryatia;
• The Republic of Ingushetia;
• Karachay-Cherkess Republic;
• Komi Republic;
• The Republic of Mordovia;
• Republic of Tatarstan;
• Udmurtia;
• Amurskaya Oblast;
• Arkhangelsk region;
• Vladimir region;
• Ivanovo region;
• Magadan Region;
• Nizhny Novgorod Region;
• Novgorod region;
• Novosibirsk region;
• Penza region;
• Pskov region;
• Ryazan Oblast;
• Samara Region;
• Sakhalin Region;
• Tver region;
• Zabaykalsky Krai;
• Yaroslavskaya oblast;
• Khanty-Mansi Autonomous Okrug.

An up-to-date list of regions with the new tax system is available at. The rest of the country will join by 2020.