STATE DUMA FREEZES PROPERTY INVENTORY VALUE

Before going on vacation, the State Duma passed Law # 985767-6 On Making Changes in Certain RF Legislative Acts (in what refers to clarifying some aspects of property valuation).

The most important amendment is that from January 1, 2017 through January 1, 2020, the property inventory value set as of January 1, 2014, will apply to the valuation of any property. If, however, a property inventory value was reduced, the lowest valuation in the period after 2014 will apply.

If, after January 1, 2014, the assessment of a previously registered, or a newly constructed property was carried out, its value will have to be recalculated on the basis of information that existed prior to January 1, 2014.

Property’s inventory value directly affects the land tax and the size of lease of state-owned and municipal property. By consequence, the tax and the lease rates will stay unchanged, too.