The project is about changing the calculation of property tax is ready for the second reading

© RIA Novosti / Ilya Petliurite in fotobanka tax Inspectorate in Moscow. Archival photoThe project is about changing the calculation of property tax is ready for the second reading© RIA Novosti / Ilya Petliurite the image Bank

The state Duma Committee on budget and taxes recommended the lower chamber of Parliament to approve in the second reading a bill that would change the calculation of tax on property of citizens and slow growth in tax payments for residents of 28 Russian regions this year, for consideration by the Duma of the document will be submitted July 19.

A bill introduced by a group of deputies headed by speaker Vyacheslav Volodin, introduces a new factor limiting the annual increase in the amount of the tax to property of physical persons according to the cadastral value: it can not grow more than 10% compared to the previous year. This coefficient will be applied in those regions where the calculation of this tax is by a factor of 0.6.

Now at calculation of property tax on the cadastral value factors apply: in the first year of application of the cadastral value for calculating the tax citizens pay tax with a coefficient of 0.2, and then, respectively 0.4, 0.6, 0.8, and only on the fifth year 100% of the tax payment. This was done to prevent a sharp increase in payments for citizens, however, due to the significant growth of cadastral cost burden on many taxpayers still increased significantly.

Cadastral valuation, which is determined on the basis of the state of mass assessment of property, from 2015 began to be used as a base for the calculation of the property tax in 28 regions of the Russian Federation, that is here in the calculation of tax for 2017 will be applied a factor of 0.6. The bill will slow the growth of the tax burden for residents in these regions to 10% per year. For residents of other regions, the procedure for calculating the tax this year will remain the same.

Russian President Vladimir Putin made it clear that the property tax must be fair and affordable for the citizens, the cadastral value may not exceed the market reminded in the introduction of the bill Volodin. Since the proposed changes are aimed at improving the situation of taxpayers, the bill gives them retroactive. The tax recalculation backdating is allowed only in case if we are talking about reducing payments.

The emergence of this initiative due to a significant increase in the tax burden on citizens due to the sharp growth of cadastral cost of objects of real estate. Its realization will allow to improve the situation of citizens and to mitigate the consequences of sudden growth of the cadastral value, explained in June RIA Novosti member of the budget Committee Vladislav Reznik.

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