Real-estate tax 2013

Bad news for the owners of the apartments in new buildings: the real-estate tax has been increased, and the market cost of the apartment did not have any influence to the financial shock.

(pic. 6.1 – Real-estate tax 2013)

(pic. 6.2 – Increase of the
real-estate taxes)

The total assessed value of the property in Moscow is determined by the Bureau of Technical Inventory (BTI). Tax amount is taken in percentage ratio from the cost «according to BTI». The older the building the less the cost of the living area.

According to confirmed amendments the owners of the apartments, where the cost is less than 300 000 rubles (according to BTI), will pay annual tax of 0,1% from the total cost of the living space. If the price of the apartment is more than 300 000 – 0,3%. New tax scale will especially have an impact to the owners of the apartments with the cost of more than 500 000 – 0,6%; and more than 1 000 000 – 0,75%. Unfortunately, the influence of other factors (except construction date of the building) to the assessed value is not clear. Magic formula of actual apartment cost calculation is still a secret even for the experts in the realty.

Opinions:

* Arcady Vlasenko (general director of “Megapolis-Service”):

«In the BTI the facts are taken from the documents of the sixties of the previous century and then they use coefficients which are «out of thin air»».

* Sergey Popravka (Director of Legal Department in Penny Lane Realty)

«Assessed value is the subject to be revised considering the building dilapidation and its age. The owners of the living space in new buildings in the suburbs of the capital will pay much more than the ones who live in the center of Moscow».

So, additional tax weigh will be put to the shoulders of the residents of new buildings, of those who bought mortgaged living space in new buildings. Sergey Popravka says: «Big tax will be added to the considerable mortgage percent». Experts in the realty field forecast in the same breath the tendency where the people will be moving to the living space which will be imposed by lower tax. Probably, in the future «the meters» will be registered to the welfare beneficiaries (in case if the government will consider their interests). Alexander Khrustalev, the head of «NDV - Nedvizhimost» gives us illustrative example: «The owners of new 3-rooms apartment with the cost of 14 million rubles will have to pay 105 000 rubles per year (about 9 000 rubles per month). The expenses will be added to the cost of housing and public utility services – it gives more advantages to the people who own old apartments with assessed value far away from the net realizable value».

( pic. 6.3 – New real-estate tax )

«The future» mentioned in the explanatory note, offered to the amendments, sais about the intention to impose a new tax – for immovables (not for property), which is calculated on base of cadastral value which is close to the market-based valuation. In this case the amount of the tax will depend not on the walls condition and not from the date when the repair work took place but from the theoretic accommodation cost on the market. There are no any precisions in the text of the document about the dates and the ways to realize this tax.

Amendments adopted by Moscow Municipal Duma entered into force from the 1st of January, 2013. A real payment according to new tax is expected from 2014. Citizens of «New Moscow» (territories connected to the Capital not long time ago) will get a delay (1,5 years) from the switch to new taxation format.

It is difficult to make any far-reaching conclusions for this future: the only one thing which is clear is that the interests of middle class are not considered again. Is it really true that ill-considered tax will make many people to dial back their plans for accommodation buying and will change the real property market in Moscow?