Putin promised to reduce property taxes

Vladimir Putin instructed to “clarify the mechanisms” for calculating property taxes for individuals - so that the collection is feasible for citizens. Interestingly, it was feasible until the government decided to calculate the tax in a new way starting in 2016 - based on the cadastral value of housing.

What's in it for me?

If you live in Moscow, then your tax bill last year should have been much larger than in previous years. And if not, there is a calculator on the Federal Tax Service website - you can calculate the new tax and be horrified at what awaits you if the tax calculation does not change.

• Explanation. Scaring and upsetting the population before an election is not a good idea. The order to reduce property taxes, which were expected to rise sharply in all regions in the coming years, is obviously intended to relieve unnecessary tension.
• Details. Until 2016, the property tax of citizens was calculated based on the inventory value of objects (according to the BTI), which in most cases was significantly lower than the market value.
• Since 2016, the calculation of property tax for citizens has been gradually transferred to a cadastral value close to the market value.
• Last year, the reform affected more than half of Russian regions. Most of them have not yet experienced a sharp increase. But, for example, in Moscow the experiment began earlier, and already last year the amount of tax for many residents of the capital doubled (more details here ).
• Example. The tax on a 100-meter apartment in an old building on Timizyarevskaya Street in Moscow increased over the year from 6,366 rubles to 12,792 rubles, a Muscovite with many children told Vedomosti.
• Quote. “It turned out that the cadastral value, which supposedly should correspond to the market value, often significantly exceeds it. But we didn’t agree this way and people didn’t expect this,” Putin said in his message today.
• The president did not say exactly how the principle of calculating the tax would change and how much it should be reduced. He only demanded that this happen in the next six months. Apparently, this will be one of the first tasks of the new government.

Anastasia Stogney