Chepeleva K.V., Saenko I.A. Differentiation of Residential Properties and New Scheme for Calculating Property Tax

Abstract: The subject of the research is a new scheme for calculating property tax to be applied as a result of Part 32 of the Tax Code of the Russian Federation entering into force. According to the authors, taking into account the fact that the law does not offer a classifier to differentiate residential properties a new tax collection scheme will have the greatest effect on taxation of old fund buildings as well as buildings located in prestigious areas. The latter is due to assessing officers using a comparative approach and a 'typical object' method that do not usually take into account consumer parameters of residency quality, i.e. comfort of a residential property. In this regard, the authors pay special attention to developing a method of referring a residential property to a particular class considering various price factors constituting its cadastral value. The object of the research is the methods and models of defining the cadastral value of residential properties. The methodology of the research involves principles of the systems approach to economic realities, qualimetry methods, methods of evaluating the quality of an urban residential environment and method of forming the integral rating of the major cities of Russia. The main conclusion of the research is that a new property tax must take into account the social component. In the future consumers will be more pragmatic about choosing a residential property and try to keep a relevant tax burden in mind. The scientific novelty of the research is that the authors develop a method for differentiation of residential properties depending in their comfort level whicdh allows to determine the amount of property tax differentiating tax rates according to the consumer quality of an object. 

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