How and by whom is the property tax rate calculated?

Property tax is probably the most discussed budget payment. And the tax rate on property causes constant discussions: physical and legal persons are dissatisfied with its high size; The authorities, on the contrary, try to maximize it. What is so special about this tax and how does it differ from its counterparts? We will try to understand this issue.

What is the essence of property tax

The rate of property tax should be applied to all material objects that are owned by a certain person. If strictly to follow the definition, then this number should include all real estate, land and vehicles. However, the last two categories define their own articles of the Tax Code. This means that separate records and calculations are kept on them. Therefore, the property tax as a term was applied exclusively to residential and non-residential buildings, as well as premises inside them. And it is not so important that it will be - a room in a communal apartment, a share in an apartment building, a skyscraper or an industrial complex - all these are taxable objects.

It is clear that the property can have a different purpose. Entrepreneurs use it to conduct business, citizens exploit it as housing. The tax rate on property takes into account this specificity. This is why higher rates are applied to commercial real estate, and they are calculated quite differently. In this case, the fact of the operation of the object does not play any role; Property automatically implies the assessment of tax.

The tax code specifies that the property tax, more precisely, its size, should be established by local government. The federal center sets the basic directions of calculations, recommends coefficients and establishes the maximum tax rate, above which it is impossible to rise. The rest is already under the jurisdiction of regional authorities.

What is the difference between tax for organizations and citizens

Naturally, the most complexities with this payment arise from legal entities. The tax rate on the property of organizations depends on many factors. Among them, we can mention the categories of taxpayers, the purpose of the property, the types of economic activity and the branch of the economy where it is used, and much more. But neither the place of origin of capital, nor the form of ownership of the size of the rates is not affected.

For citizens, the relationship in this area is based on several principles. Like organizations, the tax rate on property of individuals is fully calculated by local authorities. However, the final amount of tax is calculated by the tax inspectorate, relieving citizens of this burden. Tax authorities receive from the administration of the region the amount of rates, and from the Bureau of Technical Inventory - the amount of real estate in square meters. The rest is a matter of technology.

It is noteworthy that this department is obliged to notify the population about the terms of payment and the amounts of tax. Recently, these notifications are sent much earlier than the appointed date in order to coordinate them in the event of any comments being made on time. A form for feedback should be attached to the current notification. To make corrections it is possible and personally, having visited tax inspection.

It is known from practice that the property tax rate is a category unchanged, but here the accompanying signs sometimes have to be checked. Most often, errors are related to the value of shares in the total property, as well as the size of benefits. The latter are established not only by the federal center: local authorities also have the right to introduce their benefits to citizens. They did not pass the necessary resolution in time, and there is an inconsistency.