We have just finished sending out property tax notifications for 2020, including our apartments.
People who have found a significant increase in payment in their receipt call and write to the editorial office. What’s the matter, because the tax base and property tax rates have not changed recently?
The Federal Tax Service of the Russian Federation kindly explained to us that this was due to a change in the tax calculation formula. According to the latest decisions, to which the citizens did not pay much attention, the regions began the transition to the calculation of property tax at the cadastral value. This will inevitably lead to a significant increase in the tax burden on ordinary people. And we are told that everything is just beginning: in order to avoid a social explosion, officials decided to make the transition to a new calculation gradually, using special reducing coefficients. But even the first steps in this direction caused a real explosion of public indignation.
The idea of replacing the inventory value of our housing, which until recently was used in calculating this tax, with the cadastral value came to one of the bright minds of our outstanding business executives, who actively and with pleasure follow the instructions of the government to withdraw funds from the pockets of citizens. In addition, the amount of the tax now directly depends on the area of the apartment, the composition of the family and the period of ownership of this dwelling. That is, some tax deductions will also be applied, but knowing the entrepreneurial spirit of Russian officials, there is no doubt that this tax will be less for about one person in ten thousand, and the rest will pay much more.
For example, for an apartment of 50 square meters in Moscow, the tax has recently been about 700 rubles. In 2021, you will have to pay about 7,000 rubles. Isn’t there some difference? And this is all the more strange because the Tax Code prohibits tax increases by more than 10% per year. Or do they think that we are talking about some kind of new payment?
We will also bear in mind that the cadastral value of an apartment today is equal to the market value – it will be indexed annually in accordance with the growth in the value of an apartment on the real estate market. Consequently, the tax will also grow steadily every year.
Does a person have the right to challenge the increase in the cadastral value of his apartment if he believes that it is unfairly overstated? Oh sure. To do this, you need to write an application to Rosreestr – a typical form of such an application is available in all My Documents centers. The reasoning can be very different, but we recommend refraining from emotions and giving some specific reasons: say, a neighbor has the same apartment, but he pays less. Or find data for an entire house or block. Better yet, organize an independent examination and submit the results to Rosreestr. You can find out the cadastral value of your apartment (as well as neighboring ones) on the Rosreestr website, where this information is in the public domain. There is a chance of success. In the end, you can go to court, providing the data of the examination.
And finally, the most important thing. The cadastral value of housing does not change every day – not earlier than two years, and not later than five years after the last such event. So if you really want to reduce the cadastral value of your apartment and reduce the tax, then you need to clarify the algorithm of actions in the local administration and get down to business. But it takes effort, patience and time.