Individual property tax: rate, benefits, terms of payment

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Every person who has properly registered property must pay taxes to the state for it. Relatively recently, the inventory value of objects was taken into account for this, but now the cadastral price is applied. Such changes in legislation have led to the fact that the tax on the property of individuals has increased significantly. Citizens are not required to independently calculate this fee, since this obligation is assigned to the employees of the Federal Tax Service. But in order to make sure that the calculations are correct, it is advisable to carefully study the basic rules for calculating and paying the fee.

Changes in legislation

On the basis of Federal Law No. 284, tax on the property of individuals is paid. Various changes were regularly made to this law, but innovations are considered the loudest and most significant, on the basis of which it is required to use not the inventory price, but the cadastral price for calculation. This led to a significant increase in the amount that citizens must transfer to the budget.

The law on the tax onthe property of individuals includes not only the rules for calculating this fee, but also additionally takes into account what is the procedure for transferring funds, who can enjoy benefits, as well as what other nuances should be taken into account by taxpayers.

What is an object?

The object of taxation for this fee are different types of property owned by citizens on the right of ownership. These include the following:

• on the basis of Art. 133.1 Civil Code, a fee is charged from a single real estate complex, represented by a combination of different buildings or objects with the same purpose, and they must be inextricably linked;
• homes used by citizens as permanent residences;
• apartments in high-rise buildings;
• rooms that may be in a hostel or communal apartment;
• cottage houses;
• garages and other buildings registered in the name of a citizen;
• special parking spaces for cars;
• unfinished construction, and these types of property have been included in the law since 2015 by amending Art. 401 NK.

The main condition for levying a property tax on individuals is that a particular property must be correctly registered to a citizen, so he must have a certificate of ownership.

How is the tax base determined?

The amount of the fee is determined by the employees of the Federal Tax Service, after which the completed receipts are sent to taxpayers. Therefore, each person must notify the inspection about what objects are registered as their property.

To independently calculate the tax on property of individuals, you need to know several important information that will allow you to determine the tax base. According to new changes in the law, from 2015 to 2020, a transition to the cadastral value is made when calculating the fee. The process is gradual so that citizens do not immediately feel a significant tax increase.

To determine the tax base, you need to know the following information:

• the cadastral price of a particular object owned by a person, and this information can be obtained from the Rosreestr, and it is also assigned to different objects gradually, for which different types of property are assessed;
• reducing factor applied in different regions, and in most cities this indicator is 7;
• the federal tax rate, with many properties using the 0.1% personal property tax rate.

Knowing the above information, it will not be difficult to calculate.

How to calculate the fee?

To do this, you need to multiply the tax base by the rate, taking into account the reduction factor. The calculation can be carried out independently or using simple and affordable online calculators. To use these programs, you only need to enter the necessary information in the form. Calculation of personal property tax will begenerated automatically, after which you can get up-to-date information.

They must be compared with the data that are available in the receipts received from the employees of the Federal Tax Service. Such actions will make sure that the fee is calculated correctly.

Tax period

Personal property tax is paid annually, and funds must be paid before December 1 of the year following the reporting one. Therefore, the tax period is the calendar year.

The employees of the Federal Tax Service themselves are engaged in the calculation, after which they send notifications with receipts to the address of residence of each taxpayer. The document states until what date the funds must be paid.

If there is no receipt, then this cannot become an official reason for non-payment of the fee. Therefore, if a person does not receive a document before November 1, then he must independently come to the department of the Federal Tax Service so that the employees of this institution promptly draw up a receipt.

What rates are used?

The tax rate on the property of individuals depends on what kind of object a citizen has. Three types of bets are used as standard.

Tax rate	Objects it applies to
0, 1 %	This rate applies to all dwellings and buildings. It is additionally assigned in the presence of an unfinished construction object. It is used when calculating the fee for different complexes, if they include at least one residentialan object. It is used for parking spaces, garages and numerous outbuildings and other small structures. It is allowed to use this rate for large economic facilities, but their size should not exceed 50 sq. m, and they should also be located in the territories that are used for farming
2 %	Suitable for a variety of retail spaces, malls, offices, catering facilities, residential buildings or other similar facilities. They are used for profit, so they are charged a higher tax. Additionally, this rate can be used for residential property if its size exceeds 300 sq. m
0, 5 %	This rate applies to all other objects listed in art. 406 NK

Each region can reduce the rate, for which a specific type of real estate, its cadastral price, location and other parameters are taken into account. The personal property tax in 2018 can be reduced by local authorities to zero, but it is increased to a maximum of only three times compared to the base rate set by the federal authorities. To clarify the rate, it is advisable to use the website of the local administration.

Calculation example

For example, a citizen owns an apartment, the cadastral value of which is 2.3 million rubles. He does not belong to beneficiaries, therefore he paysfull property tax. In the region where the object is located, a reduction factor of 7% is set. The rate is 0.1%.

To calculate the tax, you must first determine the tax base, for which the cadastral price is reduced by a reduction factor: 2,300,0000, 7=1,610,000 rubles. 0.1% is charged from this value, so the tax amount is: 1,610,0000.1%=1610 rubles. It is this amount that should be transferred to the budget annually.

Can I change the cadastral price?

After the changes were introduced, many people noted that the property fee has been increased significantly. This is due to the fact that the cadastral price is much higher than the inventory index. Therefore, many people are sure that this value is unreasonably high. Therefore, it is possible to reduce this figure. To do this, an application is initially submitted to the interdepartmental commission together with other documents:

• title papers on the object;
• documentation that confirms that the cadastral price is indeed too high, for which you will have to use the services of an independent appraiser in advance;
• copy of citizen's passport.

If a negative answer is issued to this application, then with the above documents and a written refusal, you must go to court. If the results of an independent assessment are indeed much lower than the indicator set by the commission, then the court may make a positive decision for the plaintiff.

What are the benefits?

Every person who owns properly designed objects must pay personal property tax for him. Benefits for pensioners and other citizens remained after the introduction of changes. All of them are listed in Art. 407 NK.

Citizens receive exemption from the transfer of this fee:

• heroes of the USSR and the Russian Federation;
• people with the Order of Glory 3rd degree;
• citizens who are disabled of the first two groups;
• disabled since childhood;
• participants in hostilities or the Great Patriotic War;
• persons working in the police department or state security agencies;
• people who have the right to receive various types of state support based on their financial situation, he alth status or other factors, therefore they are classified as vulnerable categories of the population;
• citizens exposed to radiation as a result of accidents at various protected facilities;
• military with more than 20 years of experience;
• people involved in nuclear tests or in the elimination of various accidents;
• citizens who are members of the family of a deceased military man who was their breadwinner;
• pensioners by age.

In each region, municipal authorities can independently establish different benefits for certain categories of the population, so it is advisable to find out about the possibilities of obtaining exemptions directly on the website of the local administration.

Privileges may be provided for apartments or rooms, houses or specialbuildings and structures used for conducting creative activities. They also apply to plots of land on which buildings of up to 50 square meters are located. m. Additionally, you can get an exemption to pay a fee for a garage or a place for a car, issued in the property.

Personal property tax benefits are provided in the form of a full exemption from the fee. At the same time, they are offered only for one specific object, therefore, if a citizen who has the right to use this relief owns several apartments, then he is exempted from paying tax on only one such object, and for the second, a fee is charged on a general basis in full.

How to use the right to benefit?

In order not to pay tax, you need to confirm your right to relief. To do this, you need to transfer the necessary documents to the employees of the Federal Tax Service, which include:

• passport copy;
• object documentation;
• papers confirming the right to a benefit, and they can be presented by a pension certificate, military document or other documentation.

It is desirable to provide these papers from the beginning of the year, since if a receipt is already sent without taking into account benefits, you will have to contact the Federal Tax Service for a recount.

When do beneficiaries pay tax?

Even privileged categories of citizens, under certain conditions, must pay tax on the property of individuals. This includessituations:

• the value of the property exceeds 300 million rubles;
• there are several identical types of real estate;
• the object is used for business activities, therefore it generates income.

In most regions, even large families are considered beneficiaries.

How do I find out the amount of tax?

If you need to make sure that your own calculation is correct, you need to find out the tax on property of individuals. This information is contained in the receipt, which is sent by employees of the Federal Tax Service at the place of residence of the taxpayer.

Also, the necessary information can be found in your account on the official website of the inspection.

Property tax by TIN of an individual is quite easy to find out on this portal. Data is also provided on the State Services portal.

If enforcement proceedings have already begun against the debtor, since a significant debt has formed, then information can be provided by bailiffs, for which you need to go to the website of this service and enter data about the citizen.

Consequences of violations

If the terms of the tax on property of individuals are violated or a smaller amount is transferred than that indicated on the receipt, then this is a significant violation of the law, therefore citizens are held administratively liable. It is presented in the form of a fine, the amount of which is 20% of the tax amount.

Additionally, interest is charged for each day of delay in payment, and for thisthe refinancing rate is taken into account.

If the debt becomes significant, the Federal Tax Service can sue the defaulter, after which the bailiffs will collect funds. They have the ability to use numerous methods of influence, so a citizen’s accounts or property may be seized, and it will also be impossible to leave the country.

If the inspectorate at all has evidence of malicious and deliberate tax evasion, this may cause the non-payer to be held criminally liable.

Thus, taxes on property owned by individuals must be paid on each such object. For this, the cadastral price is now used according to new changes in legislation. It is determined as a result of a special assessment carried out every five years. If necessary, this indicator can be challenged in court. Each person must understand the tax base, rate and other parameters in order to independently verify the correctness of the calculations performed by the employees of the Federal Tax Service.