How not to get into cadastral bondage?

Revaluation of the cadastral value of commercial real estate has become relevant due to changes in the Tax Code in 2014. In accordance with the current legislation, the tax on commercial real estate of legal entities is now calculated on the basis of the cadastral value of the object. Since this method of calculating the cost of space is not accurate and usually overestimates the real price by 20-30%, the question arises as to how to remove the unreasonable monetary burden from the business. The only one way out is to challenge the cadastral value of the object.

Is it worth it?

Before entering into long financial and legal debates, it is worthwhile to weigh everything thoroughly and calculate how much the influence of the tax burden on the company's budget is and by what amount it is possible to reduce. Information about the cadastral value of the object can be found using a paid service on the information portal of the Unified State Register of Real Estate (USRN). With a slight difference (7-10%), starting this does not make sense, since the cost of the resources expended will be higher than the profit gained. The budget for challenging the cadastral value is formed of several components: market valuation, legal advice and forensic expertise. Even with a positive decision in favor of the owner, the costs are not reimbursed. The difference in previously paid taxes is also not refundable.

Court or Rosreestr?

The owner has the right to choose in which of the state bodies to file an application for revaluation of the cadastral value - is can be either directly the Rosreestr commission or the territorial court. Statistics show that the number of decisions in favor of the owner in court is much more weighty. This is partly due to the interest of Rosreestr in additional revenues to the budget, the court is usually impartial.

Time is not only money, but also taxes

If it was decided to challenge the cadastral value of the property, it is necessary as soon as possible to collect all the necessary papers and start the process. The tax is calculated on the basis of the price that has been set in the current year, i.e. if the owner filed a lawsuit at the beginning of 2017, he will pay the tax at the price set in 2016. It is possible that legal proceedings may take several months, so efficiency, in this case, is definitely the main advantage.

A stingy owner pays twice

A significant role in the consideration of the case in court will be played by the market valuation, or more precisely the quality of the examination carried out. Even minor inaccuracies in the documents may cause the court to refuse to revise the cadastral value. Therefore, it is necessary to carefully and thoughtfully choose a company-appraiser, and it is better not to save money on its services. Word of mouth in this case will tell you which company is better, because even with an abundance of companies in this appraisal segment, their reputation is usually well known among owners.

The speed of response, the quality of market expertise and legal advice play a crucial role in the reassessment. Do not hesitate and trust the professionals, then cadastral bondage will be left aside.