The Parliament registered in the order of legislative initiative a draft law on amendments to Article 280 of the Tax Code No. 1163/1997 (exclusion of the minimum tax rate for certain categories of real estate). This refers to the property stipulated in paragraph a) of subparagraph 1 of Article 280 of the TC.
The deputies of the parliamentary faction Alternativa, former Prime Minister Ion Chicu and Liliana Iaconi, propose to put this provision in the following wording: “a) for immovable property intended for housing (apartments and individual residential houses, adjacent land plots); for garages and the land plots on which they are located; for the lands of horticultural associations with or without structures located on them, the specific rate of the taxable base of the real estate objects shall be established annually by the representative and competent body of the local public administration”.
Will mitigatethe impact of periodic revaluation of real estate
In the explanatory note to the draft, deputies note that the current regulatory framework clearly defines the powers of central and local authorities in setting tax and fee rates.
Although specific tax rates should be set annually by the local public administration authority, its powers are limited, as Article 280 of the TC sets a minimum below which the local council cannot set a specific rate.
At the same time, according to preliminary publicly available data, the cadastral values of real estate have increased significantly as a result of the recent revaluation. This will create a sharp pressure on family budgets.
The abolition of the minimum statutory rate will reduce the impact of this increase on the amount of tax and give local authorities the opportunity to mitigate the impact of periodic revaluation of real estate on property owners.
