The owners of the mall asked the Russian authorities not to reassess the cadastral value of the objects this year, as this could lead to an increase in the tax base. In this respect writer Kommersant referred to a letter written by Pavel Lyulin, Vice President of the Association of Shopping Centers (STC), to Prime Minister Mikhail Mishustin.
The STC requested that the new base not be applied for taxation of real estate objects obtained during the revaluation of the cadastral value this year, if it is higher than the previous one. In addition, only the cost approach based on construction costs will be used in the revaluation without considering the comparative and revenue methods. Therefore, it is likely that the cadastral value of objects will increase significantly.
Market experts pointed out that the problem of the growth of the tax base will affect not only shopping center owners, but also many other commercial building owners. This will negatively affect some owners and cause the companies to go bankrupt. However, now challenging the cadastral value has become even more difficult due to the tightening of competition rules in 2020.
Analysts thought that the authorities would likely not suspend the reassessment of the cadastral value of commercial objects, as the budget needed to be renewed. Also, Russian authorities have already made multiple concessions for businesses during the coronavirus era.
May 29 State Duma Deputy, First Deputy Chairman of the Control Committee, member of the United Russia fraction Mikhail Romanov declarationfederal freeze on the introduction of the cadastral tax on the property of enterprises.