Senators approved a law restricting the growth of the property tax of physical persons

© RIA Novosti / Vladimir Fedorenkova in photobacteria of the Federation Council of the Russian Federation. Archival photoSenators approved a law restricting the growth of the property tax of physical persons© RIA Novosti / Vladimir Fedorenkova the image Bank

The Federation Council on Saturday approved a law which will change the tax to property of citizens and slow growth in tax payments for residents of 28 Russian regions this year.

The document 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 in order 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, in which the calculation of tax for 2017 will be applied a factor of 0.6. The adoption of the law 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.