Application for cancellation of property tax for a pensioner

Posted on March 15, 2020 in Articles

Taxes on movable and immovable property are of interest to any taxpayer - be it an individual or a legal entity. The tax reform started in 2020 with the news that mandatory contributions will increase 10 times. The grumbling, which almost turned into a popular revolt from such a bleak prospect, was calmed by explanations - the increase in tax payments is planned for a 5-year period, so there will be no sharp increase in property taxes. However, planned amendments cannot be avoided in 2020. We will figure out whether it is possible to reduce property tax, what adjustments have occurred in the area of property taxation for individuals, and also answer related questions.

Important! Property is the total number of things of a tangible or intangible type that are the property of an individual or legal entity. As part of the new property tax, only real estate is subject to taxation - residential/non-residential buildings, garages, outbuildings, and so on.

Changes in property taxation 2020

The reform of the Tax Code of the Russian Federation in terms of taxation of citizens' property seriously affected real estate owners - owners of the following objects:

Residential premises - houses, apartments and so on.
Garages (parking spaces).
Complexes that include at least 1 room intended for living.
Outbuildings with an area of 50 m2 on a personal plot, erected for gardening work.
Residential buildings under construction.

Tax regulation has been brought down to the regional level. However, the Federal Law establishes a maximum rate of 0.1% for houses and 0.5% for other real estate (apartments, parking spaces) of the cadastral price, which will become the determining factor in the calculation and assessment of tax.

Important! Property owners are required to provide truthful information about their properties. Ignoring this provision or providing inaccurate information will result in a fine of 20% of the actual tax.

How is the tax amount calculated?

When determining the tax base based on the cadastral value of the taxable object, tax rates are established in amounts not exceeding:

1) 0.1 percent in relation to:

residential buildings, parts of residential buildings, apartments, parts of apartments, rooms;
objects of unfinished construction if the designed purpose of such objects is a residential building;
single real estate complexes, which include at least one residential building;
garages and parking spaces, including those located in taxable objects specified in subparagraph 2 of this paragraph;
economic buildings or structures, the area of each of which does not exceed 50 square meters and which are located on land plots for private farming, gardening, gardening or individual housing construction;

2) 2 percent in relation to objects of taxation included in the list determined in accordance with paragraph 7 of Article 378.2 of the Tax Code of the Russian Federation, in relation to objects of taxation provided for in paragraph two of paragraph 10 of Article 378.2 of the Tax Code of the Russian Federation, as well as in relation to objects of taxation, the cadastral value of each of which exceeds 300 million rubles;

3) 0.5 percent in relation to other taxable items.

The above tax rates can be reduced to zero or increased, but not more than three times, by regulatory legal acts of representative bodies of municipalities (laws of the federal cities of Moscow, St. Petersburg and Sevastopol).

Who will pay the most

To answer this question, it is necessary to go back to the recent past. A year earlier, the calculation of real estate tax was based on the inventory value determined by BTI employees.

The positive side of this calculation option was that the degree of wear and tear of the object was taken into account annually, and this process is irreversible. With the innovation, the main value in the calculations will be the cadastral price, which is close to the market value of the property.

In other words, owners of new buildings built over the past 2-3 years can breathe a sigh of relief. For this category of citizens, the amount of the mandatory contribution will not change significantly. But the owners of objects dating back to the middle of the last century, of which the vast majority are in the vast majority of the Russian Federation, will have a hard time.

The fact is that the inventory price of old houses is lower than the market value. Therefore, to the question of who will pay the most in property taxes in 2018, the obvious answer is citizens who are owners of real estate that was 40 or 50 years old.

Assessment question: “who is to blame, and what to do?”

Many taxpayers pay attention to the fact that disproportionately different taxes are assessed on almost identical real estate. Moreover, it happens that “standard” apartments, even in neighboring buildings, are priced differently. The issue may be the poor quality of work of state appraisers, and it is quite difficult to hold them accountable. In addition to the “human factor,” the reasons for different estimates may lie in different methods used by engineers. However, errors must be corrected; if, of course, there is a desire to save on property taxes, the state cadastral valuation of real estate can be challenged.

This is important to know: Cadastral list for calculating property tax

To resolve such issues, Rosreestr has created a special commission, and if nothing can be achieved there, then you will have to go to court. Typically, two grounds for revaluation are taken into account:

The first is unreliable information about the object or insufficient information that engineers needed to take into account.

The second is the establishment of the cadastral value in the amount of the market price at the time when the assessment was made.

In order to understand the nuances, you need to familiarize yourself with the documents regulating the assessment procedure in a particular region. It is necessary to pay attention to the data on the area of real estate, to the technique of all calculations, to the applied correction factors, and it is worth looking for opportunities to achieve a tax reduction. By the way, at this stage it is better to involve a specialized expert.

If you decide to challenge the cadastral value established by state executors, the first thing you will need is the conclusion of an independent valuation specialist; you need to come with this document to Rosreestr (or directly to the court). Because, as practice shows, commissions more often refuse to change the value than make positive decisions.

When going to court, you need to understand that you will have to bear legal costs, which means that when deciding to litigate, you need to calculate everything well. Nevertheless, the chances are quite good; in judicial practice there are many civil cases where the plaintiffs managed to achieve a reduction in the cadastral value, in some cases by three times.

What is not taxed

As mentioned above, the reform of tax policy exempted owners of movable property from the annual contribution. However, no one exempted this category of owners from paying the annual transport tax, in which everything remained unchanged. Also in 2020, some categories of citizens are exempt from taxes on their real estate, namely owners who own:

A room in a communal apartment with an area of up to 10 m2.
An isolated apartment with an area of up to 20 m2.
Private house with an area of up to 50 m2.

In other words, if a person is the owner of real estate in the private sector with a total area of 40 square meters, he does not pay property tax. It is worth noting that these figures are a tax deduction that must be taken into account when calculating the annual contribution amount.

What benefits are there and who has them?

The tax legislation of the Russian Federation has identified 15 categories of citizens who are exempt from paying an annual fee for the property they use. Here are some of them:

Full holders of the Order of Glory, as well as heroes of Russia and the USSR.
Veterans of WWII and the Afghan incident.
Disabled children of groups I and II.
Nuclear weapons testers and persons who participated in the liquidation of the Chernobyl accident.
Pensioners, as well as retirees (military pensioners transferred to the reserve after completing 20 years of service).
Large families.

A complete list of individuals exempt from property taxes can be found by reading Article 407 of the Tax Code of the Russian Federation.

Important! Benefits apply exclusively to residential properties not related to commercial activities. In addition, benefits apply only to 1 property from each category - that is, one apartment, one garage, and so on.

Why dispute property taxes?

Not so long ago, in 2020, taxes began to be calculated based on the cadastral value of real estate. And it is approaching the market level. As a result, Russian citizens have to pay a lot. Even taking into account the fact that the transition to such a taxation system will be gradual.

All such taxes remain in local budgets, so executive bodies will be interested in inflated valuations, that is, in increasing the cadastral value. According to the most conservative estimates, the tax will increase 10 times.

A citizen’s desire to protect his financial interests is quite justified, because the standardized system for calculating cadastral value does not take into account many factors that affect the cost of housing. As a result, there is a risk of receiving the same price for an ordinary Khrushchev apartment and luxury apartments.

There are two ways to dispute a tax:

Pre-trial.
Judicial.

Moreover, both of these methods will have to be used; this is not an either-or choice, but a sequence of actions. So, first there is an appeal to a higher authority, and no earlier than 6 months after the assessment. You can file an application with the court only if in the first case the result was not achieved. Court proceedings can last up to 4 months. As a result, the period for challenging is very delayed, but you can still prove your case.

In order to understand whether it is worth challenging the cadastral value at all, you should calculate the costs and results, namely:

In most cases, it is possible to reduce the cadastral value by 35-40%. This means there will be less tax in the future.
You will have to spend between 30-50 thousand rubles on a lawyer.
State duty – 300 rubles.
Costs of forensic examination.

How to check calculations with the tax authorities

When dealing with any financial transactions, you should remember the good old rule - trust, but verify. This also applies to taxation. To independently calculate the property tax in 2020, you need to use the formula, which in the Tax Code of the Russian Federation has a letter designation:

H = (H1 - H2) * K + H2

Where:

N – total amount of property tax contribution;
N1 – tax calculated on the basis of the cadastral price in its pure form, taking into account the rate and tax deduction;
N2 – tax calculated on the basis of the inventory price in its pure form, taking into account the rate and deflator coefficient (the rate depends on the value of the object - 0.1% for real estate up to 300 thousand rubles, 0.3% for property up to 500 thousand rubles and 2% if the inventory valuation of the property exceeds the previous value);
K is the reduction factor, which in the current year is 0.8.

Example calculation

As an example, let's take an apartment of 100 square meters located in Kazan, the owner of which wants to calculate property tax for 2020. Rosreestr has established a cadastral price for this property of 1 million rubles and an inventory value of 300 thousand rubles. The municipal authorities of this city have established a 2% rate for calculating the tax based on the cadastral value. The tax on the inventory price is calculated taking into account the rate of 0.1% established by the Tax Code of the Russian Federation. The deflator coefficient for 2015 is 1.147. The tax deduction benefit, according to the Tax Code of the Russian Federation, is 20 square meters. Having the initial numbers in hand, we begin the calculations.

First we calculate the value of H1:

Let's find out the cost of 1 square - divide 1 million rubles by 100 m2 and get 10 thousand rubles.
We determine the square meters subject to tax - subtract 20 from 100 square meters and get 80 m2;
We find the tax according to the cadastre, for which we multiply the first figure by the second and the rate - 10,000 * 80 * 0.2.

As a result, the value of H1 is equal to 1,600 rubles.

The next step is to determine H2.

We multiply the inventory price, the deflator coefficient and the rate - 300,000 * 1.147 * 0.1. The result is an amount of 344 rubles 10 kopecks, which will reflect the H2 indicator.
According to the formula, we subtract from 1,600 (H1) - 344.10 (H2) and multiply the difference by the reduction factor (K).
The resulting value of 251 rubles 18 kopecks is summed up with the indicator H2 (251.18 + 344.10). Thus, property tax for 2020 amounted to 595 rubles 28 kopecks. The amount can be rounded down, according to the Tax Code of the Russian Federation.

Important! Input data - rate, deflator coefficient can be seen on the official website of the Federal Tax Service. You can also use an online calculator there.

How to reduce the tax amount by reducing the cadastral value

To significantly reduce the amount of property tax, you need to reduce the tax base by changing the cadastral value. This can be done in the following ways:

By submitting an application to the commission under Rosreestr;
By applying to the court to establish a new cadastral value at market level.

Organizations must first contact such a commission; an application to the court can only be filed after its decision. For individuals, it is possible to either go to court or submit an application to the commission.

Appealing to the commission has advantages: no legal costs, quick consideration of the case (about a month from the date of receipt of the application), and the opportunity to challenge the decision in court.

When considering a case in court, you need to go through the following stages:

Select a professional appraiser (appraisal company) and enter into an agreement with him to determine the market value of the property. To reduce assessment costs, you can team up with your neighbors and order a report on your house or entrance;
Conduct an examination of reports made by an appraisal company or appraiser in an appraisal SRO;
File a claim in court;
If there is a discrepancy between the cadastral value and the result of the expert assessment of more than 5%, the court orders a forensic examination, which is paid for by the plaintiff;
During the forensic examination, it is determined whether the submitted real estate assessment report complies with all legal requirements, and if everything is in order, the market value of the housing is determined;
After the completion of the forensic examination, the judge makes a decision establishing the cadastral value of the property in the amount of the market value determined by the forensic expert.
After the court decision comes into force, a new cadastral value is established.

Trials last about three to four months. The reduction in cadastral value in court can be more than 40%. You can hire a tax lawyer if you don’t have time and to be sure of the success of your case.

Before going to court, you must first calculate and compare all the costs associated with legal costs. If the reduction in cadastral value is insignificant, the benefits will be minimal and will not cover the costs of the procedure.

From 2020, changes are possible in the procedure for disputes over cadastral value. In 2020, the law “ On State Cadastral Valuation ” was adopted, according to which the cadastral value will be determined by budgetary organizations. They will create commissions that will consider applications from property owners who do not agree with the cadastral value.

This is important to know: Payment of tax for a taxpayer by another person

How to reduce tax

As mentioned above, the tax base is formed on the basis of the cadastral value established by Rosreestr. To reduce your annual fee, you must do the following:

For owners of rooms in communal apartments, subtract 10 square meters from the total area of the cost (tax deduction).
Owners of isolated apartments need to take away 20 square meters.
Owners of cottages, estates and other types of suburban buildings subtract 50 square meters from the actual area.

Also, we should not forget about the rate, which is formed at the regional level, and the reducing coefficient. The last parameter, by the way, will be canceled in 2021. If for some reason the owner believes that the cadastre has been calculated unfairly for him, it can be challenged in court or a dispute resolution commission.

How to challenge a cadastral valuation

At the moment, there are only two motives for revising the cadastral value:

Incorrect data about the property, on the basis of which the cadastral price was calculated.
Establishing the market value of the object on the date at which the cadastral price was determined.

As was said, to challenge the cadastre, you can contact the appropriate commission or court. A commission for resolving disputes on the topic of cadastral value is the best option. The case is reviewed within 30 days. Expenses required in court are excluded. In addition, after the “verdict” is rendered, if it does not suit the owner, it can be appealed in court.

For the dispute resolution commission, it is necessary to collect a mandatory package of documents. In addition to the application, you must provide:

A certificate of the cadastral value of the property, which should contain information about the disputed calculation results.
A notarized copy of the document confirming the rights of the owner.
If the reason is incorrect information about the property, then you must present a document confirming this fact.
On electronic and paper media, a report on the assessment of the object under study.

If these documents are missing, the application will not be considered. Additional information may be required.

Registration of real estate for a preferential category of citizens

One of the options for evading real estate tax is registering property in the name of beneficiaries specified in Article 407 of the Tax Code of the Russian Federation. But in this case, you need to know that only 1 object from each category is eligible for benefits - house, apartment, garage, and so on. As a result, a lot of effort must be made to find a person who will refuse the opportunity not to pay annual fees for his apartment in favor of another owner.

The situation is simpler in the private sector, a garage or parking space, new buildings and other real estate. As a rule, beneficiaries are low-income people who do not have estates, garages, apartments in new buildings and the like.

Are there other tax evasion options?

The tax legislation of the Russian Federation made sure that the country's citizens replenish the treasury. This can be seen from the material presented above. There are no options other than challenging the cadastral value in a commission or court in order to reduce taxation, as well as registering property in the name of beneficiaries. Even minor children, or rather their guardians, who own this or that property, pay annual contributions in full.

Deductions and benefits

Depending on the type of taxable property, in accordance with Art. 403 of the Tax Code of the Russian Federation applies a number of deductions that are typical only for taxes calculated on the basis of cadastral value. The essence of deductions is to reduce the tax base by reducing the total cadastral value of an object by the cadastral value of its certain share:

if we are talking about levying tax on an apartment or part of a residential building, the deduction is equal to the cadastral value of 20 square meters. m of such an object;

a reduction in property tax for individuals for individual rooms (for example, in a dormitory) or part of an apartment is carried out by subtracting the cadastral value of 10 square meters. m.;

for residential buildings, the cadastral value of 50 square meters is deducted from the total cost. m.

Example 1

Example 2

Additional property tax benefits are available to large families with 3 or more children under 18 years of age. The legislation provides for each minor child in such a family a benefit in the amount of 5 square meters. m. room, apartment (or part thereof) and 7 sq. m. m. from the total area of a residential building or part thereof. The benefit is provided for one object of each type (one house, one apartment, etc.).

Example 3

Another option for reducing the tax base is to divide the property into several shares. In this case, it is often possible to actually receive an exemption from property taxes. For example, the total area of the apartment is 60 square meters. m. If you arrange an apartment in equal shares for three owners, you will have 20 square meters per person. m. As a result, each owner’s tax payable will be zero, since each owner will receive a deduction for 20 sq. m. m.

Another way to reduce the tax liability to zero is to re-register the property to a citizen classified as a preferential category of taxpayers exempt from paying tax (pensioners, disabled people, reserve military personnel with 20 years of service, etc. - the full list is given in Article 407 Tax Code of the Russian Federation). A list of preferential categories according to regional legislation can be found on the Federal Tax Service website.

This is important to know: Can an individual entrepreneur receive a tax deduction?

What to do and where to run

It is worth knowing that you can challenge a tax only if you can prove that the tax base was taken incorrectly. And since the base is the cadastral value, it is its incorrect calculation that will have to be proven.

You can force government agencies to reconsider the cadastral value as follows:

Contact a licensed appraisal company that is a member of the self-regulatory organization of appraisers.
Order a property appraisal from her. Prices for such services depend on the object of assessment and range from 3-10 thousand rubles.
Receive a property inspection report from the company.
Receive a conclusion indicating that the report has been compiled in accordance with all legal norms and requirements.

With this document and report, at the first stage, you should go to Rosreestr at the location of the property. You must write a statement on the spot. The appeal will be forwarded to the commission working under the government agency. Such a challenge is cheaper, but the government agency very often refuses to revise the cadastral value, since this is not profitable for the municipality.

Who will have to pay and for what?

Before you challenge, it’s worth remembering who needs to pay and for what. So payment is made for real estate objects, such as:

A private house.
Apartment, room.
Garage.
Residential or non-residential premises.
Country houses, outbuildings.

The tax is calculated by the Federal Tax Service, and it is from this body that the citizen will receive a notification about the amount of tax. This letter will indicate the amount and terms of payment. The billing period for which you need to pay is 12 months.

In order to understand whether the tax is overestimated or not, it is necessary to find out exactly what the market value of the property is. You can do this yourself by considering offers for the sale of a similar property in the same region as the one you own. Cadastral, for comparison on the Rossreestr website. If very divergent results are found - more than 1 million rubles, it is quite reasonable to challenge the tax assessed on such property.

Such discrepancies arise because there are still no clear schemes for calculating cadastral value. At the same time, private companies conducting assessments choose their own methodology. The most common method is mass assessment, that is, they simply compare similar objects, information is taken from open sources.

From 2020, an innovation will be introduced - a unified federal methodology. But this will not eliminate mistakes in the future, because this will be done by government agencies, for which visiting the site is too expensive.