From 1 January 2015 the individuals’ real property tax may be calculated on the cadastral value basis

       Zonal training meeting on budget and tax innovations involving national and municipal authorities held in Almetyevsk.

       The agenda listed two questions: «Program Budget» and «Individuals real property tax».

       Minister of Finance of the Republic of Tatarstan Radik Gaizatullin familiarized participants with a current budget implementation and budgeting in the Republic of Tatarstan. The republic budget deficit for 2014 is 9.6 billion rubles. Minister sees the reason of such a state in the region socio-economic development slowdown, in an overpayment to the RT budget on income tax and in unprofitable enterprises.

       To stabilize the situation, in his opinion, it is necessary to conduct some activities. First of all – to continue the work on optimizing the Republican tax exemptions; to prepare offers on the revision of the federal tax benefits coming to the budget of RT; to continue the analysis of the provided tax privileges effectiveness and take action to improve their efficiency and others.

       Since 2015, the personal property tax is planned to calculate on the cadastral value, and not on the inventory, also known as "BTI score". A new form of calculation estimates property tax depending on the market value, and, therefore, it can be called more equitable. However, the main danger is the possibility of unfair object cadastral valuation. The Deputy Minister of Land and Property Relations of RT Rustam Merzakreev told about this assessment and the error probability:

- Years ago Moscow company has already held cadastral valuation in Tatarstan. Contractor approach was just formal, so, in the test results gross errors were revealed. For example, a nine-floor wooden house was listed there, that is impossible. In 2013, we repeated this experience once again with a local contractor in the three republican pilot areas, by the results of which it was decided to hold the real estate cadastral valuation in the entire territory of Tatarstan. Assessment will be mass. Unlike individual it ignores some nuances (floors, the view from the window...), does not require access to all the facilities, so it is much cheaper. The contractor performing the work will be determined at auction.

       Rustem Merzakreev noted that the main problems with cadastral evaluation arose due to incorrect facilities list. Many errors were done in BTI archives digitizing. Ministry of Land and Property Relations of the Republic of Tatarstan steadily moves towards their correction, "but, we hardly can identify errors related to individual housing independently" - said the deputy minister. He appealed to the district administration to provide assistance in this matter. Soon, lists of facilities whose reliability is questionable will be sent for check to the districts. Rustem Merzakreev asked to pay special attention to the building characteristics. One little mistake or lost word can greatly affect its value. Thus, a private house is classified as "individual residential building". Omission of a single word, in this case - "individual" can radically change the course of the case and turn private house to high-rise building. Tax in the case can grow tenfold.

       Another important evaluation criterion - the facility’s location. It is pointed in three places: address, inventory and KLADR. The information in them is to be the same, but often they contradict each other, and KLADR is filled not completely.

        In the case of real estate tax amount significant growth compared to the previously paid amount, it provides for a special procedure for its calculation: in the first year – a tax increase to 20 % of the growth, the second year – 40%, third year - 60%, fourth year - 80 %. In addition, certain categories of citizens will be provided benefits, but only for a single facility.