Moscow: real market value to determine property tax

If the government's plans come to fruition, this year will be spent completing property evaluations across the country according to market-based standards, paving the way for the implementation of a new property tax, which could partially enter into force as early as 2013.

The idea of introducing the new tax — which is called the unified property tax and is supposed to replace the existing land tax and individual property tax — was first voiced by the government 11 years ago, and Prime Minister Vladimir Putin said in 2009 that the move should lower the tax burden on owners of small apartments. Analysts said it might put more properties on the market and bring down prices.

The new tax will be based on a property's market value, not the current artificially low numbers set by technical inventory bureaus, or BTI — a system created during the Soviet era.

The Federal Service of State Registration, Cadastre and Cartography is responsible for the evaluation process and said it hopes to get the complete picture by the end of this year.

Source: The Moscow Times