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The state will assess realty according toold Russian tradition

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The state will assess realty according toold Russian tradition

Moscow, the RF State Duma. Our special correspondent, AlexeiNevsky, reporting from the work group sitting for discussion on the draft law in the sphere of valuation activities.


The discussion on the draft of this complex law was held at different levels, and our magazine has written about it. The draft discussion has now reached the point of taking a law to the Expert council of the State Duma.
As our special correspondent Alexei Nevsky reports, the sitting moderator, the Chairman of ‘Integration’ International club and the Vice-President of the International Mortgage Loan and Realty Academy, Irina Radchenko, opening the event, remarked that in connection with the new law, “On property tax”, all realty owners will come across changes in tax calculation.



Tax value will be calculated from cadaster cost. The RF Ministry of Economic Development and Trade has prepared a Bill concerning the evaluation of the cadaster cost of all realty in Russia, which has been met with amixed response from market experts.
Its main statements are: there will be no alternative to theevaluation – it can only be carried out by the state; and representatives of the tax inspectors, central bank, local authorities, and the Federal Property Management Agency will be included in the evaluation commission, but not qualified assessors. Nothing is stated about the current institute of contestation. Speaking about the project, the chairman of the work group, Ivan Grachev, stressed that the Bill offered by the government is not based in solid experience, so it may be taken merely as a foundation and should be changed step-by-step over several years in connection with changes in market conditions.



The chairman of the commission for cadaster evaluation at the Federal Service for State Registration, Cadaster and Cartography, and the president of the Moscow Assessors’ SRO, Alexei Kaminsky, illustrated all of the Bill’s conceptual issueswith slides. All his proposals stem from one distinct idea: the Bill must strike a balance between the state’s interests and those of private citizens, including business representatives, but not officials’ interests.



There must not be a state monopoly on cadaster evaluation, he said.In particular, he mentioned the statistics on court cases for realty evaluation in Russia: about 40,000 cases. He suggested including the institute of assessment contestation in the new Bill.

Answering questions from our magazine on how realty costs may be evaluated without knowing the exact parameters, the members of the SD expert council unanimously answered that realty technical inventory is not included within the Bill under discussion, but the issue is very acute and is a problem for the state while conducting evaluations.



Editorial note: It is very difficult to say how a realty object may be correctly assessed without technical parameters. But if we remember an old Russian tradition — to measure by ‘rule of thumb’ — it seems possible.

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