New order of personal property tax charge to be introduced in Tatarstan from January 1, 2015

On December 2, at a briefing at Tatarstan Cabinet of Ministers, Head of Federal Tax Service in Tatarstan Marat Safiullin said that new order of personal property tax charge based on the cadastral value of the property will be introduced in Tatarstan from January 1, 2015. He noted that the previous law that was passed in 1991 was obsolete.

Because of passage of the federal law dated as of October 4, №284-FL “On introduction of amendments in articles 12 and 85 of the first paragraph and the second paragraph of Tax Code of the Russian Federation and Annulment of Law of the Russian Federation “On personal property tax”, new paragraph 32 “Personal property tax” was included in Tax Code of the Russian Federation.

In Tatarstan, the regional law №82 defines that a new order of personal property tax charge based on the cadastral value of the property will be introduced from January 1, 2015. Besides the Republic of Tatarstan, new laws have been passed in 22 Russian regions.

Marat Safiullin told that the cadastral value is now most approximate to the market value. The year when the building was constructed, its location, quality of construction and other factors can influence the cadastral value. The exact property value can be found on the website of Tatarstan Ministry of Land and Property.

According to the new law, the taxable items are a house, flat or room, garage, car parking space, unfinished buildings and appurtenant structures.
Safiullin continued that tax deductions and benefits are also provided by the new law. However, there are no benefits in relation to objects with the cadastral value of more than 300 million roubles.

Answering questions of journalists, Marat Safiullin said that the cadastral valuation was conducted by a special authorized organization. The valuation can be disputed if a citizen does not agree with it.