Two cadastral values are calculated for real estate
On May 30, the Saeima adopted in the final reading the amendments proposed by the Minister of Justice Inese Lībinas-Egneres (JV) to the Real Estate State Cadastre Law, which provides for the temporary calculation of two cadastral values for real estate – fiscal and universal. As informed by the Ministry of Justice (MoJ), the changes do not foresee an increase in real estate tax payments, as the fiscal cadastral value will remain at the current level, based on 2012 market data. It will be used for real estate tax payments, fee calculations and rent determination. The law stipulates that from January 1, 2025, the State Land Service will temporarily calculate and register two valid cadastral values - fiscal and universal – for each cadastral object in the Cadastre information system. Such a system would work until the new cadastral value base approved by the government by June 15, 2027, which would be applied to cadastral value calculation from, most likely, 2029. Until then, the fiscal cadastral value would be used for the calculation of taxes, state fees and other payments in the state or local government budget, except for the calculation of fees for the legal use of land. Universal cadastral value will provide a truer picture of property value, explains TM. It will be used to determine the legal land use fee, in accounting and financial reports. The universal cadastral value will be determined based on the 2022 market data. It has been decided that this year the Cabinet of Ministers will approve the cadastral value base for the calculation of the universal cadastral value, not exceeding 80% of the average real estate price level on July 1, 2022 and using information on real estate market transactions from January 1, 2012 to January 1, 2022 .for July. The initial version of the TM amendments was aimed at determining the goals and basic principles of mass cadastral valuation, while improving the regulation on cadastral valuation of properties, the content and availability of cadastral data. The law specifies the definition that the cadastral value is the value determined for the cadastral object in the mass evaluation process in monetary terms, which indicates the economic benefit that the right to the specific object gives on the evaluation date. It is also determined that the State Land Service maintains on its website the cadastral value for determining the expropriation price in accordance with the current regulations. Minister of Justice Lībiņa-Egnere explains that due to the increased cost of living, TM has achieved the friendliest solution for the budget of Latvian families – to separate two cadastral values. Read the rest of the article here:
https://www.db.lv/zinas/rosina-uz-laiku-ieviest-divas-nekustamo-ipasumu-kadastralas-vertibas-515033
