Оспаривание кадастровой стоимости здания

Contestation of the cadastral value of a building is increasingly important as tax obligations of the landlord directly depend on the cadastral value itself.

Any real estate being owned, except market value, has more constant assess – cadastral value. It is defined on the basis of analysis of the scope of factors, which characterize one building or the other according to one of several methods developed within the practice. The appraiser operating on the contractual basis with local departments of the Federal Service for State Registration, Cadastre and Cartography, elects methods on its own. Using one method or the other initially puts into the assessment results the possibility of calculating mistake, value discrepancy because of including to the assessment indicators different characteristics of the building, the possibility to use unreliable or false information. To prevent repetition of the mistakes and effectively correspond to conditions of the market, assessment of buildings and constructions is carried out not less frequently than every 3 years, and in cities that have federal meaning – every 2 years (art.24.12 FL No.135- FL as of 29.06.1998).

Contestation of the cadastral value of a building

The cadastral value has a significant meaning not only in conduct of transactions, but also for the tax purposes. Taking into account high value of real estate, overpayment related to taxes in case of overvaluation of the building may achieve significant amounts. To avoid it, the order, which allows to contest the cadastral value, was amended from 2015. From now on, there are two options:

  • Contestation of the cadastral value of a house in the commission on considering disputes created under the local departments of the Federal Service for State Registration, Cadastre and Cartography;
  • In court.

Reasonability of contestation of the cadastral value of a building arises in cases when it is required to prove the fact of overvaluation of taxation not to overpay the tax. Tax inspectorate on its own calculates and provides notification with regard to the amount of the property tax. It uses data obtained as a result of conducted overvaluation herewith. If the taxpayer does not independently notify the tax inspectorate on the change in the cadastral value within the period up to December 31 of the expired tax period, the tax will be charged at the old rates (clause 2.1 of article 23 of the Tax Code of the Russian Federation).

Preparation to contestation of the cadastral value of a building

The first step on the way of decreasing the cadastral value is establishing the amount in which price of your real estate is assessed. For these purposes the following is necessary:

  • Visit the website of the Federal Service for State Registration, Cadastre and Cartography on which the information on value of all real estate objects registered in the Cadastre is placed in public access;
  • The public cadastral map is used to seek own real estate (https:// maps.rosreestr.ru/PortalOnline/);
  • The request has to be formed. For this purpose, it is necessary to fill in the form entering the data – cadastral number (it may be viewed in the information field in the extract of the     Unified State Register of Real Estate Rights and Transactions). It is necessary to specify the State Immovable Property Cadastre as a source of data and press the button “Form a request”. Consequently, you will obtain all the information on current value of the object determined by independent appraisers, which is interesting to you.

Backgrounds for contestation of the cadastral value of a house

There are only two backgrounds for contestation of the cadastral value of a building, which may be accepted by both competent authorities – commission and court:  

  • If the market price of the property has already been determined by the time the cadastral value is established;
  • Using inaccurate information in the assessment procedure.
  • Inaccurate information means misrepresentation of the following:
  • Location of the object;
  • Its designated purpose;
  • Accident conditions;
  • Location in areas prohibited for use (water-protective, fire-dangerous and exclusion zone of the Russian Railways etc.);
  • Designated purpose of the parcel;
  • Using inappropriate assessment method etc.

Challenging the correctness of using at least one of the above factors applied in the assessment, the taxpayer / owner may send a request to the regional department of the Federal Service for State Registration, Cadastre and Cartography, to which a reasonable response must be given within 7 days. Unfortunately, by 2020 such order of modification of the cadastral value is in force not in all regions of the Russian Federation. In some regions/territories/republics the tax is still charged on the basis of inventory value of objects.

Contestation of the cadastral value of a house – choosing the option

Contestation of the cadastral value of a building in the commission is recognized as more quick and less cost-intensive.

  • Commission must consider the application within 30 days from the moment of its registration;
  • There is no necessity to pay the significant state fee (to be paid within court consideration of the dispute);
  • There is a possibility to contest the conclusion of the commission repeatedly in court.

List of documents, which must be attached to the application disputing value of the object, must be provided by the technical employee/secretary of the commission, as well as clarify the operating procedures and provide the necessary application form. While appealing in court, the list of documents may differ, but these differences do not have the significant meaning.

In court proceedings term of contestation of the cadastral value of a house may be extended because of action of one of parties.