The mall owners asked Russian authorities not to reset the cadastral value for this year, citing a potential rise in the tax base. A report by Kommersant cited a letter from Pavel Lyulin, vice president of the Association of Shopping Centers, to Prime Minister Mikhail Mishustin regarding this request.
The Association of Shopping Centers urged that any new assessment base not be applied to real estate objects revalued this year if the new value exceeds the old one. It was also proposed that the revaluation rely solely on the construction cost approach, excluding the use of comparative and income methods. Such a move would likely push cadastral values higher across many objects.
Market observers noted that the tax base growth would affect not only shopping centers but a broad range of commercial properties. Some owners could face severe financial stress, potentially leading to bankruptcies. Critics argue that tightening rules since 2020 have made challenging cadastral valuations far more difficult for property owners seeking relief.
Analysts anticipated that authorities would probably continue the reassessment of cadastral values for commercial properties, as the budget would require updates. During the COVID-19 period, authorities did make several accommodations for businesses, but the current stance seems to favor steady progress in valuation reform.
On May 29, Mikhail Romanov, a deputy from the State Duma and first deputy chairman of the Control Committee, along with a member of the United Russia faction, called for a federal freeze on introducing cadastral taxes on enterprise property. This move signals ongoing political debate about how property taxes should align with market realities and budget needs.