The authors attribute the change to an adjustment in the cadastral value of real estate resulting from the appraisal and revaluation of approximately 6 million properties, which was completed by the Agency for Geodesy, Cartography, and Cadastre (AGCC) earlier this year. The new tax base, having increased significantly, more accurately reflects market value.
What Will Be Repealed
Currently, property tax rates are governed by Article 280 of the Tax Code and provide for minimum rates of 0.05% of the taxable base for residential property, 0.1% for agricultural land with structures located on it, and 0.3% for property used for purposes other than residential or agricultural.
Specific property tax rates are set annually by local councils. In addition, the law provides for tax exemptions for certain categories of taxpayers (public authorities and state-funded institutions, diplomatic missions, retirees, families with children with disabilities, etc.).
These exemptions are also established by local councils, including the maximum value of real estate per settlement within which an exemption from real estate tax is granted.
The authors of the “Tax Policy 2027” proposal suggest repealing the current provisions. Instead, Article 284 of the Tax Code would be amended to include a provision granting local authorities the right to provide property tax relief based on principles of social justice.
