Legal science

d. yu.n. Melnikov V. Yu.

Southern Federal University, Russia

Some problematic issues of the cadastral value assessment

Property tax is a major part of local budgets of most countries. Moreover, this budget is mainly to improve the local infrastructure. The tax has a regulating effect on the overall real estate market, as local authorities have the opportunity to adjust the tax rate to a certain basis is the cadastral value of real estate close to its market value. Tax close also to the concept of «fair taxation» as people living in luxury housing, you pay much more than living in a typical home. The tax is extremely progressive and therefore introduced in almost all countries of market economy.
To date, to establish the cadastral value of land plots in Russia is conducted by the state cadastral assessment of lands. State cadastral evaluation of land is carried out in accordance with the legislation of the Russian Federation on appraisal activity (paragraph 2 of article 66 of the RF LC)[1].

The basis for calculating the cadastral value of land plots serve as specific indicators of cadastral cost of lands (APXS), which represents its estimate of the cost per unit area (1m2) of the object GCOS. The results obtained by GCOS the basis of the new system of taxation of land, which is valid throughout the territory of the Russian Federation from 01.01.2006. In accordance with Chapter 31 of the RF Tax code the land tax is established in percentage of cadastral cost of the earth [2].

Evaluators often rely on public sources of information on offer price, and not about the actual transaction price. Cadastral value of the property determined by methods of mass valuation does not take into account restrictions and encumbrances on the subject properties, except for restrictions and encumbrances established in the legislative procedure at the Federal or regional (local) level [3].
The imperfection of the software used at a cadastral estimation, and the closeness of its algorithms do not allow to make an unambiguous conclusion about which parameters are formed, in this particular case the cadastral value of the object and how it is true. When conducting a mass appraisal it is impossible to avoid errors due to the inability of the account in mass valuation of individual characteristics of objects and other above reasons.

Often the cadastral value does not reflect the real value of the land and as a consequence the land tax calculated based on cadastral value, overpriced. Unjustified increase in the cadastral value causes the owners and tenants of land losses. Accordingly, the cadastral value of the land must be challenged.
In 2015 the Commission, created under the territorial bodies of Federal registration service, reviewed 22 400 disputes on results of determination of cadastral value, which is almost 2 times more than the year before. Thus in 2015, the commissions made 1.8 times more decisions in favour of the applicants than in 2014, and the total cadastral value of the objects in the result of the decisions of the commissions was reduced by 27 % [4].

We can conclude that cadastral valuation of land plots allowed only the chosen organizations familiar with the work of the «black box» – SPO. As such, in General, there are 3 Federal state unitary enterprises, subordinate to the Federal service for state registration: 1. FGUP "FKC «Zemlya» 2. FSUE «Goszemkadastr-capture» 3. FSUE «rostehinventarizatsiya – BTI». Test and examination of reports on cadastral valuation of land is carried out at the level of territorial administration and the Central office rosreestra.
Today we have the courts swamped with complaints, claims of owners, dissatisfied with the results of the cadastral valuation have the meanings cadastral value of land that has no economic justification and may not apply for the purposes of property management, but only for fiscal purposes. While professional appraisers in the country, United in SRO, is almost completely excluded from this work. Have a discontented population, standing in huge queues in the departments of Rosreestr, and mistrust of the results of cadastral valuation of land, as the local authorities, the public and owners of detached from it and can't even challenge the results in court.
Professional valuers should approach a possible cadastre valuation process with commonly agreed positions. The question of methodology of cadastral appraisal of real estate left open. Now the entire evaluation community, Russia needs to focus on the development of standards for cadastral valuation of real estate.

Literature

1 The Federal law of 29.07.1998 №. 135-FZ (as amended on 13.07.2015) «On appraisal activities in the Russian Federation» // Consultant +.

2 Tax Code of the Russian Federation. – M. 2016. -346 S.
3 Korostelev, S. P. Cadastral valuation of real estate from a position of professional appraiser // Theory and practice of assessment for the purposes of development. – M.:Maroseyka, 2009. – 416 s;

4 Official website of Rosreestr // https://rosreestr.ru