Administrative fines for unlawful use of land parcels will be calculated based on cadastral value
Federal Law No.46-FZ “On amending the Administrative Offences Code of the Russian Federation,” increasing the administrative liability for unlawful use of land parcels (the “Federal Law”) was adopted on March 08, 2015, namely:
(1) Currently, unauthorized use of a land parcel or part of a parcel, including use by an entity without legal rights to such land, the cadastral value of which is established, entails an administrative fine calculated based on the cadastral value, namely:
- In the amount from 1 to 1.5% of the cadastral value, but no less than 5,000 Rubles for individuals;
- In the amount from 1.5 to 2% of the cadastral value, but no less than 20,000 Rubles for officials;
- In the amount from 2 to 3% of the cadastral value, but no less than 100,000 Rubles for legal entities.
It is important to note that in the event of unauthorized use of a part of a land parcel, the administrative fine is calculated in proportion to the area of such part of the land parcel.
In the event the cadastral value is not established, the fines for unauthorized use of land parcels constitute from 5,000 to 10,000 Rubles for individuals, from 20,000 to 50,000 Rubles for officials and from 100,000 to 200,000 Rubles for legal entities. The fines have increased ten-fold as compared to the previous regulations.
(2) An administrative fine based on the cadastral value is also established for improper use of land parcels as regards their belonging to a certain category and/or permitted use, namely:
- In the amount from 0.5 to 1% of the cadastral value, but no less than 10,000 Rubles for individuals;
- In the amount from 1 to 1.5% of the cadastral value, but no less than 20,000 Rubles for officials;
- In the amount from 1.5 to 2% of the cadastral value, but no less than 100,000 Rubles for legal entities.
Previously such procedure for calculating administrative fines was provided only for improper use of land parcels zoned as agricultural land. The Federal Law has not changed the percent rate of the cadastral value for such violations.
In the event the cadastral value of the land parcel is not established, the fines for unauthorized use of the land parcel constitute from 10,000 to 20,000 Rubles for individuals, from 20,000 to 50,000 Rubles for officials and from 100,000 to 200,000 Rubles for legal entities.
In addition, the liability for non-performance or late performance of obligations on bringing land to a condition suitable for designated use, as well as for failure to perform instructions of the authorities supervising the land, has been increased.
(3) The fines for non-performance of obligations on land restoration, mandatory measures on land amelioration and soil protection, have increased substantially. Currently, a fine in the amount from 20,000 to 50,000 Rubles is established for individuals, from 50,000 to 100,000 Rubles for officials and from 400,000 to 700,000 Rubles for legal entities. It should be noted that the maximum fine for legal entities earlier was 50,000 Rubles.
As noted in the explanatory note to the Federal Law, the grounds for calculating the administrative fines based on the cadastral value are that the individual features of a certain land parcel in relation to which the violations were committed, were not considered before. Meanwhile, increase of liability will allow to encourage good behavior of the land users. Undoubtedly, the goal pursued by lawmakers is clear; however, the Federal Law leaves certain important issues open. For instance, the issue of whether the fine amount will change if the cadastral value is subsequently decreased following the results of contesting, has not been settled.
In any event, landowners now have one more good reason to check the cadastral value of their land parcels as to compliance with the market value and to take prompt measures on contesting the cadastral value in the event it is considerably overstated.
Should any questions arise in connection with the above or if you need any additional materials, please contact Igor Gorokhov or Anastasia Kuzmina, St. Petersburg Office of Capital Legal Services.
This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.