Since January 2015, a number of changes have come into effect regarding the taxation of property of citizens of the Russian Federation. Until this time, the concept of cadastral value was not used at all, and tax and pricing depended on market and inventory valuation. The latter was dealt with exclusively by the Bureau of Technical Inventory.
The amendment made to the articles of the current Tax Code affects the real estate sector to a greater extent. In accordance with new laws, new reforms are regularly developed and implemented, thanks to which over the next five years the amount of real estate tax will increase by twenty percent. Of course, it would be wrong to switch to a new system in an instant; this would create many problems and cause a too violent wave of misunderstanding and
disagreement among the population. However, it was in this way that the inventory value was supplanted by the cadastral value, although not yet completely.
In order to better understand what nuances a property owner is dealing with, he should at least superficially know how the inventory value differs from the cadastral value. Moreover, these concepts today have completely different tasks.
Fundamental difference
Most citizens know that taxation used to be based on inventory assessments. The features of these indicators were to carry out calculations from the information received regarding the assessment of the objects themselves, the date of their commissioning, the cost of construction work and the materials that were used. However, the price obtained in this way is significantly less than the market estimate. Accordingly, this price incorrectly influences the formation of the tax amount.
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The Russian government decided to replace the old and ineffective calculation method and bring the resulting value closer to the market level. As a result, the inventory value was supplanted by the cadastral valuation, on the basis of which today the amount of real estate tax in Russia is determined.
A significant difference between the cadastral value and the inventory price also lies in the fact that the cadastre takes into account when assessing those factors that are not taken into account in the BTI:
- How developed is the infrastructure (are there shops, kindergartens, schools, higher education institutions, medical institutions, stops, metro, etc. nearby);
- Location of the object (region, locality, district and its status);
- Presence or absence of security, parking;
- Location nearby structures of social significance.
The cadastral valuation is carried out by relevant specialists, just as in the case of inventory value. Government authorities revalue real estate annually, so it is highly recommended to change cadastral documentation every five years.
What is inventory value?
The inventory value of an apartment refers to the replacement cost of an apartment or other property, which includes the percentage of depreciation and the dynamics of price growth for this property. The price of construction materials, work performed and services provided is taken into account.
The inventory assessment shows the estimated value of the apartment, established by accredited appraisers of local or federal BTI. Calculation of inventory value is carried out according to the procedure approved by Order of the Ministry of Construction of the Russian Federation No. 87 dated 04/04/1992.
The calculation is carried out as follows:
- In the fundamental reference Book No. 28, aggregated indicators of the replacement cost of residential properties are taken. Based on these indicators, the apartment is revalued and its real (replacement) price is established.
- The calculation takes into account the dynamics of price growth for the reporting period.
- The percentage of physical deterioration of the apartment as of the date of the last inventory is calculated.
- The restoration index minus actual wear and tear is the value of the inventory value of the object.
Tax calculation
Since the task of the Bureau of Technical Inventory is to carry out calculations depending on the cost of real estate, taking into account the costs of its construction and actual wear and tear, the resulting price does not correspond to the actual value. The cadastre, in turn, takes into account many more nuances, including the prestige of the object and comfort. Here the result is closest to the market price, therefore it is most relevant for taxation. In general, this is the main difference between cadastral value and inventory value.
Referring to the Tax Code of the Russian Federation, the amount of real estate tax is formed by subtracting the price of twenty meters of square meters of real estate from the cadastral value. You also have to pay a tax for using a communal apartment, but its amount is half as much, that is, ten square meters are deducted. But for owners of private houses this is already fifty square meters. The number of owners does not matter. Only one tax deduction is levied per real estate property. That is, if two people live in the premises, then they can freely share all rights and responsibilities among themselves.
What is it for?
This characteristic for an apartment before January 1, 2013 was necessary to calculate the mandatory real estate tax. Letter N BS-4-11/13658 dated 07/27/2016 established that this indicator should not be calculated for tax purposes after 01/01/2013. For those subjects of the Russian Federation that did not have time to switch to calculating cadastral value, it is permissible to use inventory data calculated before the specified date.
Thus, an inventory assessment may be needed to complete the following transactions:
- donation or registration of ownership of an apartment;
- exchange of living space;
- privatization of housing;
- rental.
Important! It is necessary to know this indicator directly for your apartment, since this information makes it possible to check the correctness of the calculation of tax deductions and possible penalties.
How realistic is the new estimate?
Inventory and cadastral value have something in common. The cadastral valuation includes some parameters that are also important in the BTI assessment. The new system takes full account of;
- Full location of the property;
- Total area;
- Year of construction of the facility and its commissioning;
- Construction material that was used;
- Close location to a water body;
- Distance between the object and the center of the populated area;
- Market price of the property;
- Distance to bus station, railway station;
- Other significant regional factors that influence price formation.
Overall, the difference between the two estimates is clear. However, inventory was used not only in the taxation system. Nowadays it still remains relevant, but in other areas, especially in privatization.
Today, the inventory value is no longer used when setting prices when selling real estate, but the cadastral value is necessarily taken into account. Without it, it is impossible to conclude a deal correctly, since it is impossible to reliably determine the value of the object.
The essence of different assessments
Cadastral and inventory prices may differ not only in their intended purpose and determination principles. There are some factors that real estate owners need to know.
| What is the difference | Inventory | Cadastre |
| Taxation | Calculation of taxes until 2015 | Tax calculations from 2015 |
| Main settings | Costs of construction and construction work, including wear and tear and connection of technical communications | Real estate segment, year of construction, location, area, infrastructure |
| Difference with market price | About 10 times less | 1.5-3 times less |
| What is it for? | Privatization (in some cases), inheritance | Does not play a key role in transactions |
| Who issues | Bureau of Technical Inventory (information until 2013), Rosreestr (since 2013) | Rosreestr |
| Where is it mentioned | Technical passport for the real estate, certificate of inventory value of the property | Cadastral passport |
| Right to receive | Owners, their guarantors by power of attorney, tenants (tenants) | Open information posted on the official website of Rosreestr |
| How to get | Present your passport and title documents | Have access to the Internet |
| Right to dispute price | The information on the basis of which the assessment work was carried out is unreliable | The information on the basis of which the appraisal work was carried out is unreliable, the date of determination of the cadastral value and the market price are the same |
General information
Previously, without an appraiser's opinion (BTI), it was impossible to carry out any real estate transactions. This was due to the calculation of real estate tax, which was based on the inventory value. However, in 2015, in accordance with the legislation of the Russian Federation, a project on the cadastral service was launched, the transition to which will be fully implemented before 2021.
To calculate real estate tax, there is a deflator coefficient, which depends on the current situation in the country, as well as on the depreciation of real estate. It is established by authorized bodies and will be used until the full transition to cadastral valuation of property.
Starting from 2021, the inventory report will no longer be a legal basis for calculating taxes from individuals. It is necessary to consider the main differences between these estimates.
Inventory assessment
Inventory assessment (cost) is the value of real estate, which is calculated in the BTI. She is an expert and is necessary for legal transactions when selling, buying real estate, registering a deed of gift for property, etc.
The assessed value of real estate is always lower than the market value and affects the amount of tax. The apartment is sold at one price, and the BTI values it at another. The tax price at market value is significantly higher than at assessed value.
The assessment takes into account the following factors:
- Housing area.
- Technical characteristics of real estate.
- Year of construction.
The main technical characteristics are the following: communications, main and load-bearing walls, window and door openings, type of foundation, cost of building materials, number of floors, etc. All these characteristics can be found out from the documentation for the apartment.
The inventory value of real estate is a subjective indicator, since the number of square meters and the cost of consumables are taken into account. Very important factors that influence the choice and purchase of housing are not taken into account. Valuation is often used in the following cases: exchange, registration of deed of gift, privatization of real estate, rental, purchase or sale.
Cadastral value
The cadastral valuation of any real estate differs from the inventory valuation, since it is formed by many criteria: number of floors, location, category, amenities, infrastructure, etc. Its value is approximately two times lower than the market value. It was developed by Rosreestr and determines the tax base. The cadastral valuation does not depend on supply and demand, like the market valuation. Real estate can only be assessed by Rosreestr employees who have the authority to do so.
Cadastre technology is available to everyone. In order to use it, you should contact Rosreestr, which provides information from the State Register of Real Estate. The inventory value of the property is disclosed only to its owner or when concluding contracts.
The cadastral value is used when calculating tax or to generate information from the Unified State Register of Real Estate (USRN) according to the new system. However, it is not used when concluding real estate transactions.
Main differences
Most citizens of the Russian Federation do not know the main differences between cadastral and inventory valuations of real estate. They differ not only in the calculation methods, but also in the final amount.
You can get a certificate of real estate valuation in 2021 from two different accounting authorities: from the BTI - inventory, and from Rosreestr - cadastral. The valuation of an apartment during cadastral calculation is higher than the inventory value, since not only its technical characteristics are taken into account, but also other factors that affect its value.
To calculate the tax rate of the cadastral value, a coefficient is used, which is a certain number of square meters for different types of housing. It is not subject to tax. For a room it is 10 square meters. m., apartments - 20 sq. m., and for a private house - 50 sq. m. If the property has an area that is less than the coefficient, then the owner is exempt from paying tax. In addition, a certain group of the population has benefits when paying taxes.
The preferential categories include:
- Pensioners.
- Participants of the Great Patriotic War and hostilities.
- Liquidators and participants in the accident at a nuclear power plant (nuclear power plant).
- Disabled people of groups I and II.
- Military personnel whose service experience is at least 20 years.
- Families raising 4 or more children (under 18 years of age).
More information about preferential categories can be found in Rosreestr, since there are additions to the laws of the Russian Federation on the cadastral project. Some people do not realize that finding out information about cadastral valuation is quite easy. There are certain rules by which you need to search for information of interest to citizens of the Russian Federation.
Rules for finding information
Inventory and cadastral values of real estate are different estimates. Information about them can be found out in the relevant government institutions: cadastral - Rosreestr, inventory - in the BTI. However, in cases where information does not need documentary confirmation, it is possible to use the Internet resource of the cadastral service.
On the site you can find out information about any real estate property. It is more difficult to find out information about the inventory valuation. You can get it from the BTI or use the Public Services Center, called “My Documents.” However, only the owner of the property or a person representing his interests can find out this information. In the latter case, a duly executed power of attorney is required.
To obtain a certificate, you must provide the following documents to the BTI or the Public Services Center:
- A document that confirms Russian citizenship.
- Ownership of real estate.
- Statement.
- Receipt for payment of state duty.
Documents that confirm ownership of real estate include the following: sales contract, deed of gift, certificate of inheritance, etc. You can calculate the valuation yourself, but to perform it you need to familiarize yourself with some of the features of this operation.
Challenging, deadlines and shortcomings
It is equally important to know some differences regarding issues of contestation and some other nuances. So, for example, to challenge an inventory assessment, you need to:
- File a claim in court at the location of the property, where the defendant will be the party who conducted the assessment. Legal entities file a claim in the arbitration court;
- Attachment of an inventory passport of the object, title papers for it and an independent examination report (if necessary).
The cadastral valuation is also contested when a claim is filed against the party that carried out the valuation, with the appendix of a cadastral passport, notarized title documents, papers indicating that the value was determined unreliably, and a report on the assessment of the market value, if it has changed.
There are no deadlines for challenging the inventory price, but for challenging the cadastral value, they are six months from the date when the relevant information was entered into the unified state real estate register.
Both assessments have a drawback, for example, the inventory assessment is already outdated, since it was developed back in the 1960s and takes into account few parameters. Cadastral valuation, in turn, is also far from perfect. It requires frequent revision as its relevance often changes.
Where and how can I find out?
In order to find out what the inventory assessment of the apartment is, you need to contact the nearest BTI and request a certificate containing this information. To do this, you need to follow a number of steps:
- When completing any legal transaction with real estate, clarify whether such a certificate is needed.
- Find out which BTI can provide this service.
- Provide your passport and existing documents for the apartment to the BTI.
- Fill out an application for the issuance of a certificate, paying the cost of this service at the rates of the local BTI.
- Show up at the appointed time for the completed certificate.
To save time, you can use the services of third-party organizations that will represent your interests in the BTI and go through all the necessary procedures to obtain a certificate.
Information can be obtained at any convenient MFC. You must receive a ticket to wait in line and go to the window indicated on the ticket. The necessary data can also be found through the government services portal. To do this, you need to go to the Rosreestr website and enter the cadastral number of the object or its address in the drop-down field.
Assessment procedure
When interested in the differences between cadastral value and inventory valuation, it is very important to pay attention to the methods used. The Technical Inventory Bureau has been approaching this procedure very scrupulously and methodically for many years. The cadastre does its job much faster. If we look at the step-by-step actions, they consist of:
- The administration makes a decision on a planned revaluation;
- Preparation of a list of immovable objects by Rosreestr that will be revalued (information is available in the unified register);
- Rosreestr's involvement of an appraisal firm on a competitive basis;
- Carrying out the procedure by a cadastral appraiser in accordance with current coefficients and regulatory documents;
- Conducting an examination by a self-regulatory body;
- Receipt of information by local government bodies and their publication;
- Entering data into a single database.
A licensed appraiser, who can be ordered for an independent examination from a special company conducting this type of activity, can explain the difference between cadastral and inventory values.
What does it affect?
Reference. The inventory assessment is the starting value when making calculations for tax payments for real estate.
From January 1, 2013, the apartment tax is taken based on the cadastral value and is calculated at the rates prescribed in the regulations of local governments. In this case, the total inventory assessment of housing is taken into account, multiplied by a coefficient - deflator.
These calculations are being introduced in stages in different regions of the country. Some cities have switched to a similar calculation in accordance with Letter N BS-4-11/13658, and some areas and regions are experiencing a transition stage. This means that an inventory assessment of the apartment will be necessary for all owners, without exception, for a long time .
Inventory revaluation
Challenging an inventory assessment is within the competence of government agencies, but the initiator of this procedure is an individual or legal entity who is the legal owner of the object.
The assessment is also carried out by government specialists. Planned - in accordance with the decision of the local government, repeated - at the request of the owner, forced - by court decision. In accordance with federal standards, planned inventory assessments are carried out en masse, geographically. If we are talking about a challenge, the real estate falls under individual consideration by a special commission. Even if the case is sent to court and the plaintiff hired qualified independent experts who gave their opinion, the court must order repeated work to ensure the rationality of the claims.
When revaluing, it is important to keep in mind that planned evaluation work is distributed according to related technical characteristics of apartment buildings. Despite the fact that the evaluation principle is similar, there are several formulas for calculating the price. The final assessment must be displayed in the electronic database of Rosreestr or in the archives of the Bureau of Technical Inventory.
