“The methodology of tax calculation and changes in the base value of real estate are so serious that assistance to local authorities will be needed in the process of setting updated rates,” says Viorel Furdui, executive director of the organization. – Cadastral authorities have already started to organize training seminars for local authorities in the territories, and these should be continued to successfully complete this complex process together”.
Local governments will use the new assessment to regulate real estate tax rates. So that it does not become overly burdensome for the population, and at the same time meets the realities of the real estate market, where mass revaluation was carried out twenty years ago.
“Updating the cadastral value of real estate objects will not lead to additional revenues to the state budget, because this tax is directed to local budgets,” Finance Minister Andrian Gavrilice specified after the government meeting. – At the same time, the new market value of real estate will serve as a benchmark for determining the rates of this tax. According to the legislation, they are set by the local councils. Therefore, they will have to adjust the tax rates in line with the current market realities, but at the same time with the current opportunities of citizens”.
Recall that on January 26, the Agency of Geodesy, Cartography and Cadastre presented the results of assessment and revaluation of the cadastral value of real estate objects and initiated public consultations on the preliminary results of this process. Citizens can check the data on the page geodata.gov.md, and owners who do not agree with the technical characteristics of housing, within 90 days to file objections.
The process of approving the new cadastral value of real estate will be completed by the end of October, after which it will start to be applied for taxation purposes from 2027.
It will be up to local authorities to decide how much the property tax will increase. But some localities have been independently assessing unregistered real estate objects until now. In accordance with the legislative procedure, a commission is created in the city hall, which conducts it, and then the results are approved by the local council. Thanks to this, such villages already tax real estate at the actualized market value, which is closer to the economic realities of today. As a result, property tax revenues in these communities have increased significantly.
