Wednesday, January 13 2021 14:34

ArmInfo. In Armenia, the owners of self-built buildings will have the opportunity to legalize illegal buildings at cadastral value. The amendments to the law "On  Determining the Procedure for Cadastral Valuation of Real Estate  Close to Market Value" and in the Land Code received a positive  conclusion from the Commission on Economic Affairs of the RA National  Assembly, which met on January 13.

According to the Deputy Head of the RA Real Estate Cadastre Committee Arman Petrosyan, at present there are about 8 thousand applications for the legalization of  illegally built objects. The package provides for these applicants to  register these objects and enter the property tax field until  December 31, 2021. Until now, as noted by Petrosyan, the owners of  illegal buildings have not paid anything to the budgets of local  self-government bodies. In case of refusal to register, from January  1, 2022, the market value of the assessment will already be applied  to them. Moreover, amendments to the Civil Code are being prepared,  according to which all illegally erected buildings are subject to  demolition. In turn, the chairman of the commission Babken Tunyan  proposed to add another addition to the package, according to which  all other owners of illegal buildings will have 3 months - until  April 1 - to submit applications for registration, after which they  will have the opportunity to legitimize them until December 31 of  this year. at the cadastral value. The keynote speaker agreed with  this proposal. Recall that on November 19, 2019, the National  Assembly of Armenia approved amendments to the law "On Determining  the Procedure for Cadastral Valuation of Real Estate Close to Market  Value", which implies a change in the cadastral value of real estate  and a subsequent change in property tax. Instead of the current tax  on property and land, the idea of a single tax on real estate (land +  building) will be introduced, defining land as its object, and  ensuring the transition from cadastral value to real market value,  without affecting agricultural land. Cadastral prices will be formed,  close to market prices, which are supposed to be used for taxation  and various transactions. It is planned that as a result of these  steps, a competitive and unified valuation system will be created, a  large difference between the market and cadastral values will be  eliminated, and tax legislation will be significantly facilitated. It  is also planned to increase tax revenues, especially from the  taxation of expensive property. The zoning of the country will also  be carried out (the territory will be divided into 12 zones, the  number of which is planned to be increased to 20 in the future),  after which the government will provide for a tax-free threshold for  the value of real estate. (currently it is 3 million drams, it is  planned to double it - ed.). The base cost is proposed to be revised  every three years, while it was last revised in 2003. The changes  will take effect on January 1, 2021, after which the property tax  rates, minimum threshold and new zoning estimates will be determined.