Problems with property valuation can beget a social explosion

The principles of property valuation of real estate need to be revised, according to the Federation Council.
A meeting was held in the upper chamber with the participation of legislators, duty officers, representatives of Rosreestr and adjudicators of the Accounts Chamber to find out what conditions the new methodology should meet.
Property duty is now calculated on the base of the cadastral valuation. The problem is that, as practice shows, it’s frequently far from the request value of objects and significantly exceeds it.
In addition, experts said that indeed for two bordering land plots or apartments of the same size in the same area, the estimated value may differ several times. The courts in the regions are formerly submersed with statements from displeased possessors who refuse to pay levies.

property valuation


“ moment we’re at the position of great peril of just outrage of the citizens of our country. Which, not understanding and not seeing real grounds for paying high levies. Then are some exemplifications given then. This won’t only beget outrage, but may beget a social explosion, ” said Senator Vyacheslav Timchenko.
In addition, in order to avoid deformations, it’s necessary to reduce the number of government agencies involved in duty collection, the legislators believe. Now seven structures are involved in this, including the Federal Tax Service, Rossreestr and the Cadastral Chamber. It’s necessary to determine one specific department that will be responsible for the entire procedure and respond to the claims and questions of citizens, the parliamentarians believe.

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