Monday, November 14, 2011

Property Tax: long overdue

Nedvizhimost07-05-2009 Property Tax: It is high time recently stepped up talks on increasing real estate tax for individuals to market levels, that is hundreds of times higher than the existing one. Some expect that this will affect only luxury real estate, others fear a sharp rise in the tax burden on all citizens. Bigness.ru interlocutor insists that tax reform designed primarily to integrate the existing property tax and land tax. Differentiation of tax payments - not a priority nuance reform. Direct link to create a single tax and no increase in tax rates. After all, nothing prevents local governments to raise land taxes today. Words of Russian Prime Minister Vladimir Putin said recently that there is an agreement to intensify the process of introducing local property tax, called a resonance in the media. Immediately began talking and the fears of the growth of property taxes. For now, this tax is paid by the notional value of housing (as defined in the BTI), which is hundreds of times lower than the market. Revaluation of property can make an intolerable tax burden for many residents of most Russian cities - the tax will be in the thousands of dollars a year. However, sounded a more humane assumption that a reformed tax will be at the same time a luxury tax, and levy it will be in full only to owners of luxury homes.

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