Another state cadastral valuation of real estate to take place in Moscow and St. Petersburg in 2018

An official announcement has been posted on the Moscow Mayor’s web site regarding another cadastral valuation of real estate to take place in Moscow in 2018. In February, a similar announcement was made by St. Petersburg authorities.

Cadastral valuation should be completed by year-end and, possibly, the new cadastral valuation will be used for taxation purposes as early as the beginning of 2019.

We should note particularly that the cadastral valuation will for the first time be done based on new principles set by Federal Law No.237-FZ “On state cadastral valuation” dated 03.07.2016. The cadastral value in effect today has been used since the beginning of 2017 and was calculated in accordance with Federal Law No.135-FZ “On appraisal activity in the Russian Federation” dated 29.07.1998.

The organization conducting Moscow’s cadastral valuation in 2018 will be the City Center for Property Payments and Housing Insurance, subordinate to Moscow’s Department of City Property. Under the former procedure, valuation was performed by private appraisers based on a contract with the city.

As we noted in one of our reviews earlier, it is assumed that the new method for calculating the cadastral value should be more precise and should consider individual features of real estate that have an impact on the end price.

One of the new features is also the owners’ right to submit to the city authority a declaration on the properties of the real estate they own. This declaration needs to be filed using a particular form and its purpose is to inform the authority of all the details essential for determining the precise value of the real estate.

Given this news, owners should keep in mind that until the new cadastral valuation results are recorded in the Real Estate Register (EGRN), they are also entitled to contest the current cadastral value which will be used for taxation purposes in 2018. If the application is filed in time, the end results will apply starting January 1, 2018 and up until the time the new cadastral valuation results are approved.