Land valuation is divided into mass cadastral valuation of land plots and market valuation of individual plots.

Cadastral valuation of land plots is a mass valuation, which is a set of administrative and technical actions to establish the cadastral value of land plots within the boundaries of an administrative-territorial entity according to assessment zones.

State cadastral valuation of land is carried out using a unified methodology in order to ensure comparability of assessment results throughout the entire Russian Federation. The main purpose of cadastral valuation is to create a tax base. The purpose of the market valuation of a land plot is to determine the market (investment, liquidation) value of a single plot of land on the date of valuation by independent appraisers in accordance with accepted standards and valuation methods.

Mass valuation characterizes a set of valuation objects and the application to groups consisting of a large number of them of a single, general algorithm for deducing value. The mass valuation model may contain a time factor, but this is not typical for individual valuation, since analogous objects are selected directly to the valuation date .

As world experience shows, in addition to fiscal goals, mass assessment can solve the following problems:

assessment for collateral portfolio management;

determining the starting price at auctions;

determining the redemption price of land in state or municipal ownership;

calculation of rental rates for real estate;

economic justification for the cost of seizure of land plots for state needs and planning of project estimates related to such seizure;

increasing the efficiency of real estate management.

Both types of assessment - mass and individual - are based on systematic methods of collecting, analyzing and processing market information to obtain well-founded results. In the process of mass assessment, the appraiser has to carry out the same actions as in an individual assessment; the differences are mainly associated with differences in the scale of work and methods of quality control of the assessment.

Since mass assessment involves the development of a standard methodology, it requires not only agreement on the task, but also decision-making and a unified assessment procedure. The weight of the expert’s decision and ability to influence the final result is less than with an individual assessment. In addition, valuation models should reflect supply and demand patterns that are specific to groups of properties rather than individual units. Since a valuation model is viewed as a mathematical interpretation of the behavior of the real estate market at a particular time, mass valuation models are more complex because they attempt to replicate market activity over a wide geographic area.

Both in mass and individual assessment, three main approaches are used - comparative, income and cost. The choice of specific methods is determined by the type of property, market conditions and the availability of the necessary information. Both types of assessment, using the same approaches and methods, differ in the assessment methodology: the depth of analysis of the most important pricing factors, as well as the volume and methods of processing used to assess information.

Just as is done in individual assessments, mass assessments involve a best use analysis. Market analysis for the purposes of mass assessment involves the widespread use, along with expert methods, of statistical methods that help stratify data and build an adequate market model. In some cases, when certain market segments are underdeveloped, it makes sense to talk about the type of value being assessed (investment value). The construction and calibration of models also has its own peculiarities.

In an individual assessment, to arrive at a final value, the appraiser coordinates the results of the three approaches and makes a final decision. In mass assessment, its final stages are model verification and quality control of the results obtained. The quality of the work performed is assessed primarily by statistical methods: most of the estimates obtained should fall within a given range of average deviation from actual sales prices. Along with statistical control, expert control is carried out to compensate (if necessary) for the insufficient quality of initial information on market transactions. In addition, the assessment must comply with existing professional standards, and for mass assessment, in addition to ethical and substantive ones, there are a number of statistical criteria for the quality of the model. Thus, the standards of the International Association of Tax Appraisers require that the dispersion coefficient, which determines the average deviation, for residential properties does not exceed 15%, and for the group of income-generating real estate 20%.

It must be emphasized that individual and mass assessments are not interchangeable. Each of them has its own area of ​​application. Mass valuation is for the simultaneous valuation of a large homogeneous group of objects for tax purposes, and individual valuation is for assessing the market value of individual objects during various market transactions. Both assessments can only complement each other in necessary cases.

Thus, we can highlight the following differences between mass and individual assessment:

1) object of assessment;

2) the number of objects of assessment;

3) the complexity of the assessment;

4) qualifications of performers;

5) the amount of information processed and created in the course of work;

6) formation of a list of assessment objects;

7) determination of cost factors of objects of assessment;

8) collection of information about the values ​​of price-forming factors of the objects of assessment;

9) grouping of assessment objects;

10) modeling the value of valuation objects;

11) checking the quality of the results obtained;

12) algorithm for calculating the cost of objects;

13) accuracy of results;

14) formation of information resources based on the assessment results.

In general, we can conclude that both mass and individual assessments are systematized types of assessment intended for modeling markets, including the land market. They are based on the same principles, including the principle of best use, but differ in the scale of modeling, methods of measuring the pricing characteristics of objects, algorithms for processing market information and final indicators. Information obtained during the state cadastral valuation can be used to determine the market value of land plots.

When conducting an assessment, the appraiser is obliged to use (or justify the refusal to use) cost, comparative and income approaches to assessment. The appraiser has the right to independently determine specific assessment methods within each assessment approach. This takes into account the volume and reliability of market information available for use of a particular method.

As a rule, when assessing the market value of land plots, the sales comparison method, the allocation method, the distribution method, the land rent capitalization method, the residual method, and the intended use method are used.

The comparative approach is based on the sales comparison method, the allocation method, and the distribution method. The income approach is based on the method of capitalization of ground rent, the residual method, and the method of intended use. Elements of the cost approach in terms of calculating the cost of reproduction or replacement of land improvements are used in the residual method and the allocation method.

The following is the content of the listed methods in relation to assessing the market value of land plots occupied by buildings, structures, structures or intended for their placement, as well as the features of assessing the market value of agricultural land.

If other methods are used in the assessment report, it is advisable to disclose their content and justify their use.

Sales comparison method

The method is used to evaluate land plots, both occupied by buildings, structures and (or) structures (hereinafter - built-up land plots), and land plots not occupied by buildings, structures and (or) structures land plots (hereinafter referred to as undeveloped land plots). The condition for applying the method is the availability of information on the prices of transactions with land plots that are analogues of the property being valued. In the absence of information on the prices of transactions with land plots, it is allowed to use supply (demand) prices.

· determination of the elements by which the evaluation object is compared with analogous objects (hereinafter referred to as the elements of comparison);

· determination for each element of comparison of the nature and degree of differences of each analogue from the land plot being assessed;

· determination for each of the comparison elements of price adjustments of analogues, corresponding to the nature and degree of differences of each analogue from the land plot being valued;

· adjustment for each element of price comparison for each analogue, smoothing out their differences from the land plot being assessed;

· calculation of the market value of a land plot through a reasonable generalization of adjusted prices of analogues.

The elements of comparison include the factors of value of the property being assessed (factors whose changes affect the market value of the property being assessed) and the characteristics of transactions with land plots that have developed in the market.

The most important cost factors tend to be:

location and environment;

intended purpose, permitted use, rights of other persons to the land plot;

physical characteristics (relief, area, configuration, etc.);

transport accessibility;

infrastructure (presence or proximity of utility networks and conditions for connecting to them, social infrastructure facilities, etc.).

The characteristics of land transactions include, among other things:

1) conditions for financing transactions with land plots (ratio of own and borrowed funds, conditions for the provision of borrowed funds);

2) terms of payment when making transactions with land plots (payment in cash, settlement by bills, offsets, barter, etc.);

3) the circumstances of the transaction with land plots (whether the land plot was presented to the open market in the form of a public offer, affiliation of the buyer and seller, sale under bankruptcy conditions, etc.);

4) changes in prices for land plots for the period from the date of conclusion of a transaction with an analogue to the date of assessment.

The nature and degree of differences between the analogue and the assessed land plot are established in the context of the elements of comparison by direct comparison of each analogue with the object of assessment. In this case, it is assumed that the transaction with the object of assessment will be made based on the characteristics of transactions with land plots that have developed in the market.

Adjustments to the prices of analogues for comparison elements can be determined both for the price of a unit of measurement of the analogue (for example, a hectare, square meter) and for the price of the analogue as a whole. Price adjustments can be calculated in monetary or percentage terms.

The magnitude of price adjustments is typically determined in the following ways:

· direct pairwise comparison of prices of analogues that differ from each other only in one element of comparison, and determination, based on the information thus obtained, of adjustments for this element of comparison;

· direct pairwise comparison of the income of two analogues, differing from each other only in one element of comparison, and determining, by capitalizing the difference in income, adjustments for this element of comparison;

· correlation and regression analysis of the connection between changes in the comparison element and changes in prices of analogues (prices of units of measurement of analogues) and determination of the equation for the relationship between the value of the comparison element and the market value of the land plot;

· determination of costs associated with changing the characteristics of a comparison element in which the analogue differs from the object of evaluation;

· expert substantiation of analogue price adjustments.

As a result of determining and making adjustments, prices of analogues (units of measurement of analogues), as a rule, should be close to each other. In case of significant differences in the adjusted prices of analogues, it is advisable to choose other analogues; elements for which comparison is made; adjustment values.

Selection method

Conditions for using the method:

availability of information on the prices of transactions with single real estate objects, similar to a single real estate object, which includes the land plot being assessed. In the absence of information on transaction prices, the use of bid prices is allowed);

correspondence of land improvements to its most effective use.

The method involves the following sequence of actions:

1) determination of the elements by which a single real estate object, including the assessed land plot, is compared with analogous objects;

2) determination for each of the elements of comparison of the nature and degree of differences of each analogue from a single real estate object, including the assessed land plot;

3) determination for each of the elements of comparison of adjustments to the prices of analogues, corresponding to the nature and degree of differences of each analogue from a single real estate object, which includes the land plot being valued;

4) adjustment for each of the elements of price comparison of each analogue, smoothing out their differences from a single real estate object, which includes the land plot being assessed;

5) calculation of the market value of a single property, including the land plot being assessed, by means of a reasonable generalization of the adjusted prices of analogues;

6) calculation of the cost of replacement or the cost of reproduction of improvements to the assessed land plot;

7) calculation of the market value of the assessed land plot by subtracting from the market value of a single real estate object, including the assessed land plot, the cost of replacement or the cost of reproduction of improvements to the land plot.

The amount of costs for creating improvements to a land plot can be determined using aggregated and (or) elemental cost indicators.

Integrated cost indicators include both indicators characterizing the parameters of the object as a whole - square, cubic, linear meter, and indicators for complexes and types of work.

Elemental cost indicators include elemental prices and rates used in determining the amount of costs for creating improvements.

Aggregated and elemental cost indicators calculated at the price level fixed for a specific date (basic price level) can be recalculated into the price level as of the valuation date using a system of current and forecast indices of changes in construction costs.

Calculation of the amount of costs for creating improvements using elemental cost indicators can also be carried out using resource and resource-index methods. Resource (resource-index) methods consist of calculating in current (forecast) prices and tariffs all resources (cost elements) necessary to create improvements.

When determining the amount of costs for creating improvements to a land plot, one should take into account the investor’s profit - the amount of the most likely reward for investing capital in creating improvements. The investor's profit can be calculated as the difference between the sale price and the costs of creating similar objects. The investor's profit can also be calculated as the return on capital for his most likely investment with a similar level of risk.

When determining. replacement cost or reproduction cost takes into account the amount of accumulated wear and tear of improvements.

Accumulated depreciation of improvements may be determined in total or in monetary terms as the sum of the physical, functional, and portion of economic depreciation attributable to the improvements.

Physical depreciation is the loss of value of improvements due to deterioration of their physical properties.

Functional wear and tear is the loss of value of improvements due to the inconsistency of the space-planning solution, building materials and engineering equipment of improvements, the quality of construction work performed or other characteristics of improvements with modern market requirements for this type of improvement.

Economic depreciation is the loss of value of a single property caused by the negative impact of factors external to it.

Physical and functional wear and tear can be removable or irreparable. Economic wear and tear is usually irreparable. In this case, wear and tear is removable if the cost of its elimination is less than the increase in the value of the property as a result of its elimination.

Distribution method

The method is used to evaluate built-up land plots.

Conditions for using the method:

· availability of information on the prices of transactions with single real estate objects, similar to a single real estate object, which includes the land plot being assessed. In the absence of information on transaction prices, it is permissible to use supply (demand) prices;

· availability of information on the most probable share of a land plot in the market value of a single property;

· compliance of land improvements with its most effective use.

The method involves the following sequence of actions:

determination of the elements by which a single real estate object, including the assessed land plot, is compared with analogous objects;

determination for each of the elements of comparison of the nature and degree of differences of each analogue from a single real estate object, including the assessed land plot;

determination for each of the comparison elements of price adjustments of analogues, corresponding to the nature and degree of differences of each analogue from a single real estate object, including the land plot being assessed;

adjustment for each of the elements of price comparison for each analogue, smoothing out their differences from a single real estate object, which includes the land plot being assessed;

calculation of the market value of a single property, including the assessed land plot, by means of a reasonable generalization of the adjusted prices of analogues;

calculation of the market value of the assessed land plot by multiplying the market value of a single real estate object, which includes the assessed land plot, by the most probable value of the share of the land plot in the market value of a single real estate object.

Ground rent capitalization method

The method is used to evaluate built-up and undeveloped land plots. The condition for using the method is that it is possible the importance of obtaining land rent from the assessed land plot.

The method involves the following sequence of actions:

1) calculation of land rent created by the land plot;

2) determining the value of the corresponding land rent capitalization coefficient;

3) calculation of the market value of a land plot by capitalizing land rent.

Capitalization of ground rent is understood as the determination, on the date of the valuation, of all future values ​​of ground rent that are equal to each other or changing at the same rate for equal periods of time. The calculation is made by dividing the value of land rent for the first period after the date of assessment by the corresponding capitalization coefficient determined by the appraiser.

Within the framework of this method, the value of land rent can be calculated as income from leasing a land plot under the conditions prevailing in the land market.

The main ways to determine the capitalization ratio are:

· dividing the value of land rent for similar land plots by their selling price;

· an increase in the risk-free rate of return on capital by the amount of the premium for the risk associated with investing capital in the assessed land plot.

In this case, the risk-free rate of return on capital is understood as the rate of return for the least risky investment of capital (for example, the rate of return on deposits of banks of the highest category of reliability or the rate of return to maturity on government securities).

Remainder method

The method is used to evaluate built-up and undeveloped land plots. The condition for applying the method is the possibility of developing the assessed land of a plot of land with improvements that generate income.

The method involves the following sequence of actions:

calculation of the cost of reproduction or replacement of improvements corresponding to the most efficient use of the assessed land plot;

calculation of net operating income from a single property for a certain period of time based on market rental rates;

calculation of net operating income attributable to improvements for a certain period of time as the product of the cost of reproduction or replacement of improvements by the corresponding capitalization ratio of income from improvements;

calculation of the amount of ground rent as the difference between the net operating income from a single property for a certain period of time and the net operating income attributable to improvements for the corresponding period of time;

calculation of the market value of a land plot by capitalizing land rent.

The method also allows the following sequence of actions:

1) calculation of the cost of reproduction or replacement of improvements corresponding to the most efficient use of the assessed land plot;

2) calculation of net operating income from a single property for a certain period of time based on market rental rates;

3) calculation of the market value of a single property by capitalizing net operating income for a certain period of time;

4) calculating the market value of a land plot by subtracting the cost of reproduction or replacement of improvements from the market value of a single piece of real estate.

Net operating income is equal to the difference between actual gross income and operating expenses. In this case, only those operating expenses that, as a rule, are borne by the lessor are deducted from the actual gross income.

Actual gross income is equal to the difference between potential gross income and losses from idle premises and losses from non-payment of rent.

Potential gross income is equal to the income that can be received from renting out the entire area of ​​a single real estate property in the absence of losses from non-payment of rent. When assessing a land plot, rental rates for the use of a single property are calculated on the basis of market rental rates (the most probable rental rates at which the property being assessed can be leased on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and the rental rate does not reflect any extraordinary circumstances).

For premises that are empty and used by the owner for his own needs, market rental rates are also used. Potential income includes other income derived from permanent improvements to the property but is not included in the rent.

The amount of operating expenses is determined based on market conditions for leasing single real estate objects. Operating expenses are divided into: constant - independent of the occupancy level of a single property, variable - dependent on the occupancy level of a single property and costs for replacing elements of improvements with a useful life less than the period of use of the improvements as a whole (hereinafter referred to as elements with a short useful life) . Operating expenses do not include depreciation charges on real estate and expenses for servicing debt obligations on real estate.

The cost of replacing improvement elements with a short lifespan is calculated by dividing the amount of costs for creating these improvement elements by the period of their use. In the process of performing these calculations, it is advisable to take into account the possibility of a percentage increase in funds to replace elements with a short service life.

Management expenses are included in operating expenses regardless of who manages the property - the owner or the manager.

When calculating the capitalization rate for land improvements, you should take into account the most likely rate of change in income from improvements and the most likely change in the cost of improvements (for example, when the cost of improvements decreases, take into account the return on capital invested in improvements).

Intended Use Method

The method is used to assess built-up and undeveloped land plots tkov.

The condition for applying the method is the possibility of using the land in a way that generates income.

The method involves the following sequence of actions:

· determination of the amount and time structure of expenses necessary for the use of a land plot in accordance with its most effective use option (for example, the costs of creating improvements to a land plot or the costs of dividing a land plot into separate parts that differ in shape, type and nature of use);

· determination of the amount and time structure of income from the most efficient use of the land plot;

· determination of the amount and time structure of operating expenses necessary to obtain income from the most efficient use of the land;

· determination of the discount rate corresponding to the level of risk of investing capital in the assessed land plot;

· calculating the value of a land plot by discounting all income and expenses associated with the use of the land plot.

In this case, discounting is understood as the process of bringing all future income and expenses to the date of assessment at a discount rate determined by the appraiser.

To bring all future income and expenses to the date of assessment, discount rates are used, obtained based on an analysis of the rates of return on capital of investments with similar risk levels.

The source of income can be the rental, economic use of a land plot or a single piece of real estate, or the sale of a land plot or a single piece of real estate in the most likely time frame at market value.

Calculation of income in the option of renting out real estate should include taking into account income from the sale of a single property at the end of the forecast period.

Features of assessing the market value of agricultural land.

The assessment of agricultural land plots is carried out based on their permitted, sustainable and most effective use, taking into account the characteristics of the agricultural zoning of the territory.

To carry out an assessment within the boundaries of an agricultural land plot in accordance with its explication, the following are distinguished:

agricultural land (arable land, hayfields, pastures, fallow land and perennial plantings);

lands occupied by buildings, structures, structures used for production, storage and primary processing of agricultural products;

lands occupied by on-farm roads, communications, trees and shrubs intended to protect land from the effects of negative (harmful) natural, anthropogenic and man-made phenomena, closed reservoirs.

The market value of an agricultural land plot is determined on the basis of the assessment of the agricultural land included in its composition and the land occupied by buildings, structures, structures used for the production, storage and primary processing of agricultural products. At the same time, the market value of the assessed land plot is determined taking into account the characteristics of the lands included in its composition, occupied by on-farm roads, communications, trees and shrubs, intended to ensure the protection of lands from the effects of adverse natural, anthropogenic and man-made phenomena, closed reservoirs that cannot be used for business activities.

Agricultural land and enclosed bodies of water that can be used for business activities (for example, fishing) are usually valued using the sales comparison method or the rent capitalization method.

Land occupied by buildings, structures, structures used for the production, storage and primary processing of agricultural products are assessed by methods of assessing built-up or intended for development of land plots. Land under outbuildings (sheds and other non-permanent buildings) located on agricultural land is assessed as agricultural land.

When assessing the market value of agricultural land using the sales comparison method and the land rent capitalization method, the fertility of the land plot, as well as the influence of environmental factors, should be taken into account as part of the cost factors. The main factors determining the fertility of a land plot, in particular, include: qualitative characteristics of the soil layer of the land plot (nutrient content, moisture supply, aeration, mechanical composition, structural composition, acidity, etc.), relief, microclimate.

When assessing the market value of agricultural land using the method of capitalization of land rent, there are features of calculating land rent associated with the adopted system for accounting for the fertility of a land plot.

Land rent is calculated as the difference between gross income and the costs of agricultural production, taking into account the profit of the entrepreneur. Gross income is calculated for a unit of land area as the product of the standard yield of an agricultural crop and its market price.

The standard yield of an agricultural crop is determined by the fertility of the land plot, measured in quality points.

The selection of the main and associated agricultural crops for which land rent is calculated is carried out from a set of crops typical or traditionally cultivated at the location of the land plot. At the same time, the criteria for choosing crops and their rotation are to ensure the greatest income and maintain soil fertility.

Material costs for the production of agricultural products are determined on the basis of technological maps that establish standard costs of seeds, fuels and lubricants, fertilizers, etc. in kind.

Costs in monetary terms are calculated based on market prices prevailing in the area where the land plot is located.

When calculating costs, the level of engineering development of the land plot is taken into account, including the density of the road network, the class of roads, proximity to transport routes, points of processing of agricultural raw materials and logistics centers.

When calculating gross income from arable land, the possibility of obtaining several harvests during one season for vegetable products and medicinal plant products can be taken into account. The deposit is assessed by the method of intended use, taking into account the economic feasibility of its transfer to another type (types) of agricultural land.

When calculating the gross income of hayfields and pastures, one should proceed from their standard yield. The standard yield of hayfields and pastures is determined by its conversion into centners of feed units (1 centner of feed units equals 1 centner of oats). In this case, the amount of gross income is determined on the basis of the market price of oats.

When calculating the gross income of perennial plantings, it is recommended to proceed from the frequency of their fruiting and the standard yield of fruit and berry products. This takes into account:

1) age of perennial plantings;

2) species and varietal composition of perennial plantings;

3) features of the spatial placement of perennial plantings within the boundaries of the land plot;

4) the possibility of generating income from additional products obtained from the rows of orchards and vineyards.

In general, to summarize, we can say that real estate valuation requires an individual approach in each specific case. Many factors influence the value of real estate. Understanding all the nuances and drawing the right conclusions is not easy. The appraiser requires skills and insight into the market situation. For each case and each type of value, different approaches and methods will have higher priority, which is what the appraiser needs to determine.

Land is the most important natural resource, the basis of life. And that is the only reason why it is priceless. For many, the very question of the price of land seems fundamentally unacceptable. Jean-Jacques Rousseau exclaimed: “...you will perish if you forget that the fruits of the earth are for everyone, and that the earth itself is no one’s.” And one of the most prominent thinkers and writers in the United States, Ralph Waldo Emerson, noted: “By purchasing land, you become the property of the land.”

But people have been selling and buying land for a long time. And one of the urgent needs of the existence of the land market is the assessment of the value of land.

Concept of land valuation

Estimating the value of land makes it possible to transfer the conversation about it to the “monetary” plane, to consider it as a commodity. Land valuation is an assessment of a piece of land, since it is land plots (i.e. parts of the earth's surface, the boundaries of which are described and certified in the prescribed manner), and not land “in general”, that are the subject of civil circulation.

When carrying out valuation activities, several types of land values ​​are used. Article 66 “Land Valuation” of the Land Code of the Russian Federation (LK RF) talks about two types of value: market and cadastral. In relation to land plots they also talk about investment value.

When determining the market value of a land plot, the most probable price at which it can be alienated on the valuation date on the open market under competitive conditions is determined. At the same time, the parties to the transaction act reasonably, having all the necessary information, and the value of the transaction price is not affected by any extraordinary circumstances.

When assessing the market value of a land plot, the intended purpose, permitted use, and rights to it of persons other than the owner are taken into account. With a change in any of these legal parameters, the market value of the land plot changes.

5 / 5 (votes: 2 )

Currently, large cities are experiencing a situation that requires the determination of a market-reasonable level of land value, on which mass land valuations are based. To do this, it is necessary to maintain an economically fair balance of interests of all: owners, users of land plots and the municipality, as well as requirements for the rational use of the city territory. Practical tasks facing the city include both the fiscal function (filling the city budget) and the regulatory function.

Diverse tasks are associated with determining different types of values ​​of land plots according to various tasks (for example, for the purpose of determining urban planning or land cadastral valuation) or making appropriate adjustments to a certain “base” value according to the specifics of a particular task. From the experience of foreign countries it is clear that the basis of the methodology for fiscal calculations is the mass valuation of land. It includes the market value of housing, rental income of commercial development and the cost method for properties with weak liquidity.

At the moment, this problem is being solved in the country through the methodology for calculating the cadastral value of land and settlements, which was prepared by Roszemkadastr based on the methodology adopted at the federal level. But there is one more, in our opinion, significant flaw. Based on data on sales of developed plots of land, the cadastral value of land is calculated using the “extraction” method; in the Valuation Standards, which are mandatory for use by subjects of valuation activities, it is called the “allocation method”.

This method requires knowledge of the area of ​​the land plot or data on the land share coefficient (the ratio of the area of ​​land that falls on 1 sq.m. of the total area of ​​the apartment for sale). The technical instructions of this method state that this indicator must be determined on the basis of a table or according to the schedule of the year of construction of the area - (SNiPs in force at that time), which regulated the density of buildings and the number of storeys of residential buildings.

Today, mass economic assessment of city land objects is carried out using a technique that was previously technically impossible to apply, because it required a large number of calculations and multidimensional classifications. Such techniques are characterized by cluster and correlation-regression analysis, methods of paired comparisons and prioritization, a systematic approach and the formation of databases.

By applying these methods, it is possible to increase the scientific validity of management decisions and qualitatively analyze the work of this approach. For example, calculating the cost of land based on data on apartment sales can be done using two approaches (methods):

1. Calculation based on all sales data to a “standard” apartment for a given segment and only then calculation of the cost of land using the allocation method. The advantage of this method is the simplification of the upcoming calculations (for only one apartment), but the disadvantages include the high probability of error in choosing a reference apartment using paired comparison methods, bringing the apartment to the reference and, therefore, the possibility of large inaccuracy of the results.
2. Determining the cost of land in a certain area for each of the apartments being sold. Here the calculations are more complicated (for the entire data set), but the percentage of accuracy increases.

For example, in a certain residential area there are six buildings of different heights and public facilities.

According to the schedule, the need for territory for travel, sidewalks, parking lots, playgrounds and landscaping is calculated, which falls on 1 resident, taking into account the average number of floors in the block of 7.3: and it is equal to 4.2 + 11.1 = 15.3 m2 / person . It turns out that for a population of 1,370 people in the quarter, 20,961 m2 of territory for housing is needed, and the actual area is 12,055 m2. Moreover, the area allocated for retail facilities is 10 times larger, based on SNiP standards, and gives the city authorities a reason to think about placing such facilities in this quarter.

It is necessary to start calculating the cadastral value of 1 sq.m. land in a residential area. The average price of 1 sq.m. of an apartment for sale at the beginning of 2005 was determined by 19 thousand rubles, while the average price of 1 sq.m. apartments in new buildings equals the amount of 9333.38 rubles excluding VAT. Therefore, taking into account the average wear and tear of buildings in the quarter at 15%, we allocate the price of 1 sq.m. apartments falling on the ground, it is equal to 9639 rubles. Using the land share coefficient, we calculate the market value of 1 sq.m. living space in the block, it is equal to 24,714 rubles/sq.m.

Foreign experience shows that the cadastral value of land falls from 50 to 70% of the market value; it turns out that it is determined at about 24,714-0.6 = 15,000 rubles. Taking into account the amount of rent for the year from 3 to 7% of the cadastral value of the land, in this case it will be equal to 15,000-5% = 750 rubles / sq.m of land.

This is a very low amount for a retail facility (it is equal to a tenth of the cost of renting premises for retail purposes in a given area), and it can bring a significant replenishment to the city budget, since it is almost ten times more than the base rental value for land use.

When compared with another quarter of the city with one residential four-story building and several non-residential real estate objects, according to the schedule, the required area of ​​land for the purpose of serving residents in the quarter is 15.6 + 5.8 = 21.4 sq.m/person, or 1819 sq.m. . m. According to calculations, the area of ​​land that falls on a residential building is 7,343.1 sq.m. The ratio of retail premises to residential premises also significantly exceeds SNiP standards.

With similar calculations of the rental price for a plot of land, we find out that it is approximately four times less, which characterizes the inefficient use of land in a residential area. These problems can be solved by increasing the share of residential buildings in a given quarter, because now investing money in housing construction is a very profitable business. In this case, the value of the land share coefficient decreases, the cadastral value of the land increases and, consequently, the rent of the used territory in the quarter increases, which, of course, will bring revenue to the budget of the district and the city.

Therefore, massive land valuation acts as the economic basis for managing urban real estate, which contributes to the reasonable use of urban areas and replenishment of the city and district budgets. If you have any questions regarding the mass valuation of land, you can seek advice from the NP “Federation of Forensic Experts”, where you will receive qualified advice on the issues that have arisen, and you can order mass valuation calculations of land.

If you are interested not only in the topic of land valuation, but in related issues, such as real estate valuation, then we are pleased to inform you that we will be happy to conduct a real estate valuation for you, not only in Moscow and the Moscow region, but also in all regions of the Russian Federation.

Prices

NOTE:

The price of land valuation services is indicated including taxes. Transport costs are paid separately.

Appendix 5.

Lecture No. 1 for Chapter 1. Land assessment: the concept and content of land assessment. Economic valuation of real estate and system of payments for land.

1.1. The need for land assessment

The land is the basis of all life processes of society occurring in the political, economic, social, industrial, communal, environmental and other spheres. In this regard, it has value and adequate valuation of land is one of the most important conditions for the normal functioning and development of the economy and society. The need for the results of an objective assessment of land (land plots) is felt by both state and municipal executive authorities in order to effectively manage land resources and implement rational land and tax policies.

Land in the Russian Federation as a natural resource, real estate and the main means of production is subject to valuation.

An appraisal is an estimated or expert value of a real estate property, or any proprietary interest in it, carried out by an authorized person, a specialist in the analysis and evaluation of real estate.

An assessment process is a specific sequence of procedures used to obtain an assessment. The process usually ends with an appraisal report, giving probative value to the estimate of value.

In global valuation practice, there are two types of valuation of land plots: mass (for taxation purposes or other government purposes) and individual land property (individual valuation).

As a result of the state cadastral valuation, a real picture of the value of land (land plots) on the territory of the Russian Federation will be obtained, which will allow for more efficient management of land resources and related real estate, as well as balanced planning of the revenue side of budgets of all levels (within the limits of payments , coming from land tax and rent), stimulate the development of investment processes and the development of the economy as a whole.

The need to obtain a reliable estimated value of land plots is experienced by both state and municipal executive authorities when managing land resources, implementing the long-term development of settlements, carrying out rational land and tax policies, and private subjects of land law when making various types of transactions with land, for the purposes of determining the most rational, most effective development of a particular region, or a particular plot of land.

1.2. Land as a factor of production

Land as an object of market relations occupies a unique and key importance in the entire system of entrepreneurial activity, since it is the main and natural factor in any area of ​​business.

Economic theory traditionally distinguishes three groups of factors of production: land, labor and capital. Land is considered as a natural factor, as natural wealth and the fundamental basis of economic activity.

Land, first of all, being a natural resource, and then a spatial basis, a means of production and real estate, has a number of specific features that the appraiser needs to know and take into account in the process of assessing its value:

· land is not the result of human labor, like other means of production, it is a product of nature. Consequently, no costs were required for its appearance as a commodity; nature “produced” it. Thus, we can conclude that the approach based on cost analysis is not applicable to land;

· in all sectors of the national economy, land is the spatial operational basis, that is, the place on which the labor process takes place;

Being conditioned by the development of the capitalist economy itself, political economy in England reached a stage when the need arose to create a system, the need to streamline and generalize economic knowledge. Adam Smith was a man and a scientist who was up to such a task. Smith was born in 1723 in the small town of Kirkcaldy, near Edinburgh (Scotland). The book “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776) cost him nine years of complete hermitage and brought him fame as the “father of economic science.”

In his political economy, Adam Smith considered ground rent: “As the product of those forces of nature, the use of which the owner grants to the tenant by way of loan. This product is larger or smaller depending on the size of the corresponding force of nature, in other words, depending on the degree of natural or artificially created fertility of the earth. It is that product of nature which remains after the deduction or balance of all that can be considered as the work of man” (Smith. T. II, pp. 377-378) [Russian translation, p. 268].

Land rent is usually considered as the price paid to the landowner (or the income received by him) for the provision of quantitatively limited and qualitatively different land resources for the use of a commodity producer, i.e., for any special advantages or favorable conditions. Similar advantages can be for a farmer - soil fertility or favorable location conditions, for an industrialist - possession of a production secret or privilege.

Land rent in its developed, monetary form is a market category that exists where and when, in the developing proportions of commodity-money exchange, excess profit or excess (exceeding the average standard of profitability) net income is formed, due to the action of natural rent-generating factors associated with the use of irreplaceable limited resources. resources.

“Ownership of land,” wrote K. Marx, “itself created rent.” Marx is to recognize “absolute” rent. The latter refers to rent from lands of poorer quality (fertility) or more distant from markets.

The study of the emerging economic relations associated with the ownership, use and disposal of land in a market economy allows us to identify the presence of the following forms of land rent: absolute and differential.

Absolute rent is the only rent component that allows for the possibility of its normalization and price list expression within the boundaries of the territory used by a given industry, in contrast to the continuously changing values ​​of differential rent when moving from one area to another.

Of primary importance is differential rent, the formation of which is associated with the difference between farms in the quality of land and their location, distance from the market (differential rent I). In conditions of intensification and widespread implementation of the achievements of scientific and technological progress into practice, differential rent II arises as additional profit from the use of additional investments per unit of land area.

Review of Russian land valuation methods

The division of the land fund of the Russian Federation into land categories is the basis for a differentiated approach to assessing the value of land resources. The Land Code of the Russian Federation named among the basic principles of land legislation the division of lands into categories according to their intended purpose. According to Art. 1 clause 1, the legal regime of lands is determined based on their belonging to a particular category and permitted use in accordance with the zoning of territories and legal requirements. In Art. 7 of the Land Code of the Russian Federation provides for the division of lands of the Russian Federation into the following categories:

1) agricultural land;

2) lands of settlements;

3) lands of industry, energy, transport, communications, radio broadcasting, television, computer science, lands for space activities, lands of defense, security and lands of other special purposes;

4) lands of specially protected areas and objects;

6) lands of the water fund;

7) reserve lands.

The assignment of lands to one category or another, their transfer from one category to another and the procedure for transfer are regulated by both the Land Code of the Russian Federation and other laws. In particular, Art. 8 of the Land Code of the Russian Federation says that the decision to transfer land from one category to another in relation to lands in federal ownership is made by the Government of the Russian Federation. Lands owned by constituent entities of the Russian Federation and agricultural lands owned by municipalities are transferred to another category by decision of the executive authorities of constituent entities of the Russian Federation. In turn, municipally owned lands, with the exception of agricultural lands, can be transferred to another category based on a decision of local government bodies.

In relation to privately owned lands, the decision to transfer them to another category is made either by the executive authorities of the constituent entities of the Russian Federation - for agricultural lands, or by local government bodies - for lands of other special purposes. The procedure for transferring land from one category to another is established by federal laws.

The legal regime of lands of various categories is formed on the basis of chapters XIV - XVIII of the Land Code of the Russian Federation, which determine the composition, use and procedure for the provision of lands of one or another category, and identify types of lands with a special regime of use and protection.

According to Art. 77 of the Land Code of the Russian Federation, agricultural lands are lands outside the boundaries of settlements, provided for agricultural needs, as well as intended for these purposes. As part of agricultural lands, agricultural lands - arable lands, hayfields, pastures, fallow lands, lands occupied by perennial plantations - have priority in use and are subject to special protection. In addition to agricultural land, the land in this category includes land occupied by on-farm roads, communications, trees and shrubs intended to protect the land from the effects of negative (harmful) natural, anthropogenic and man-made phenomena, closed reservoirs, as well as buildings, structures, structures used for the production, storage and primary processing of agricultural products.

The cadastral value determined during the assessment of agricultural land is of particular importance, since it directly affects the characteristics of the use of agricultural land, including for non-agricultural needs. For example, according to Art. 79 of the Land Code of the Russian Federation, for the construction of industrial facilities and other non-agricultural needs, lands that are unsuitable for agricultural production or agricultural land from agricultural lands of poorer quality at cadastral value are provided. For the construction of power lines, communications, highways, main pipelines and other similar structures, it is allowed to provide agricultural land from lands of higher quality. Confiscation, including through redemption, for the purpose of providing agricultural land for non-agricultural use, the cadastral value of which exceeds its average regional level, is allowed only in exceptional cases provided for by law.

Lands of settlements, according to Art. 83 of the Land Code of the Russian Federation, lands used and intended for the construction and development of urban and rural settlements and separated by their line from lands of other categories are recognized. The procedure for use and cadastral valuation of settlement lands are determined in accordance with the zoning of their territories, i.e., division into territorial zones.

Lands of industry, energy, transport, communications, radio broadcasting, television, computer science, lands for space activities, lands of defense, security and other special purposes, according to Art. 87 of the Land Code of the Russian Federation recognizes lands located outside the boundaries of settlements and intended to support relevant types of activities. Lands of this category, depending on the nature of the special tasks for which they are used or intended, are divided into a number of subcategories (industrial lands, energy lands, transport lands, etc.) with the peculiarities of the legal regime established by Art. 88 – 93 of the Land Code of the Russian Federation and other regulations.

Lands of specially protected areas include lands that have special environmental, scientific, historical, cultural, aesthetic, recreational, health and other valuable significance, which are withdrawn in accordance with decrees of state authorities or decisions of local governments, in whole or in part, from economic use and turnover and for which a special legal regime has been established (Article 94 of the Land Code of the Russian Federation).

Chapter XVIII of the Land Code of the Russian Federation regulates the legal regime of forest fund lands, water fund lands and reserve lands.

It should be noted that forest lands include both forest lands (covered with forest vegetation and not covered with it, but intended for its restoration) and non-forest lands (clearings, roads, swamps and others). The lands of the water fund include lands occupied by water bodies, lands of water protection zones of water bodies, as well as lands allocated for the establishment of right of way and protection zones for water intakes, hydraulic structures and other water management structures and facilities. Finally, reserve lands are lands that are in state or municipal ownership and are not provided to citizens or legal entities, with the exception of the land redistribution fund formed in accordance with Art. 80 Land Code of the Russian Federation.

The regulatory and legal basis of existing methods for cadastral valuation of land is the Decree of the Government of the Russian Federation of August 25, 1999 No. 000 “On the state cadastral valuation of land” and the Decree of the Government of the Russian Federation “On approval of the Rules for the state cadastral valuation of land”. The rules approved by the above resolution determine the procedure for conducting state cadastral valuation (GKO) of lands of all categories on the territory of the Russian Federation for tax purposes and other purposes established by law. State land assessment is carried out by the State Committee of the Russian Federation for Land Policy (since May 15, 2000, by the Federal Land Cadastre Service, Roszemkadastre), its territorial bodies, as well as enterprises and organizations under their jurisdiction. Other persons who have a license to carry out appraisal activities may be involved in these works.

GKO of lands is based on the classification of lands according to their intended purpose and type of functional use. The rules of the State Land Property Committee regulate the conduct of appraisal work for one or another category of land fund. For categories (subcategories) of land involved in market turnover (settlement lands, horticultural, vegetable gardening and dacha associations), state tax assessments are carried out through statistical analysis of market prices and other information about real estate, as well as other methods of mass real estate valuation. The basis for the valuation of agricultural land and forest lands is the method of capitalization of estimated rental income. Lands of other categories can be assessed either on the basis of capitalization of estimated rental income or on the basis of the costs necessary for the reproduction and (or) preservation and maintenance of the value of their natural potential.

In the process of state land assessment, assessment zoning is carried out - dividing the territory into assessment zones, including land plots that are homogeneous in purpose and type of functional use with similar cadastral value values.

Currently, in the Russian Federation, at the federal level, a unified methodological approach has been developed for assessing the cadastral value of lands in settlements, agricultural lands, as well as lands of horticultural, gardening and dacha associations.

The GKO methodology for settlement lands is intended to determine the cadastral value of land plots within the boundaries of urban and rural settlements and is based on statistical analysis of market prices, other information about real estate and on approaches and methods of mass real estate valuation adapted for Russian practice. In the methodology under consideration, the cadastral value of land plots is determined taking into account:

– the level of market prices, rental rates for land plots within the boundaries of settlements and other information about real estate;

– area of ​​the land plot;

– type of territorial zone and type of functional (permitted) use of the land plot;

– location and environmental factors.

The composition of the primary data used in this Methodology is formed on the basis of statistical and other information processed by land management, urban planning, other services and appraisers in their activities. In particular, information on transactions with real estate can be represented by data on transactions with real estate (purchase and sale, rent, purchase of land plots under privatized enterprises), as well as offer prices for real estate published in special publications or the media.

The main stages of calculating the cadastral value of settlement lands according to the Method under consideration are:

In 2002, in addition to the methods of state cadastral valuation of settlement lands and the valuation of agricultural lands, a method of state cadastral valuation of lands of horticultural, gardening and dacha associations was developed and approved.

In accordance with the methodology under consideration, the determination of the cadastral value of land plots of horticultural, gardening and dacha associations (hereinafter associations) is carried out in the following order:

– clustering of associations;

– determination of the specific indicator of the cadastral value of land for each association;

– determination of the cadastral value of land plots of associations.

Lecture No. 2 for Chapter 2.

Factors, principles and approaches to land valuation. Basics of land stratification

– balance.

According to the principle of residual productivity, the value of land is based on its residual productivity (or productivity). The theory of residual productivity is based on the four components of production (capital, labor, management, land) necessary to carry out any type of activity.

Each component of production must be covered from income received from business activities. However, due to the fact that land is physically immovable, and labor, capital and management are attracted to it to carry out business activities, these three components of production are paid first, and the remainder of the income is paid to the owner of the land as rent.

The principle of marginal productivity (the principle of contribution) is based on the provision of the remaining income received as a result of investments after covering costs. The principle of marginal productivity in relation to land plots is implemented as follows: the costs of improving the quality properties of the land (applying fertilizers, carrying out reclamation, etc.) make it possible to increase its value in an amount significantly greater than the invested costs. The size of the contribution will correspond to the difference between the increase in price as a result of improvements in land quality and the costs of these improvements

The principle of increasing and decreasing returns is that an increase in capital investment in the main components of production causes a proportional increase in the rate of profit growth only up to a certain limit, after which the increase in profit becomes less than the increase in capital investment. This limit corresponds to the maximum value of the property, to determine which the appraiser needs to analyze various options for using the land, for example, calculate the profit from the construction of various types of real estate or different numbers of objects on this site. Thus, the principle of increasing and decreasing profitability is implemented in the process of variant design of various combinations of production components and determining the maximum profit on this basis.

The essence of the principle of optimal economic value is as follows: given the current trends in the real estate market, a certain (optimal) value of a given type of real estate is in greater demand. The principle of optimal size applies to both buildings and land. For example, on the housing market in Moscow, one- or two-room apartments are in high demand, and on the land market in the Moscow region, land plots measuring 10 acres are in high demand.

Directly related to land plots and real estate located on them is the principle of optimal division of property rights. The main postulate of this principle: property rights to a property should be divided and combined in such a way as to increase the total value of the property. In relation to land plots, the division of property rights can be carried out as follows:

– physical division – division of rights to airspace, to the surface of the earth and its subsoil, division of the land mass into separate plots;

– division by time of ownership and use – various types of lease, lifelong ownership, future property rights;

– division of the totality of property rights of ownership – the right of ownership, fixed-term or perpetual use, disposal, lifelong (inheritable) possession;

5. Coordination of results and conclusion on the value of the estimated value.

6. Drawing up a report on the result of the cost assessment.

In Western practice of property valuation, including land, certain approaches or methods have developed that are widely used in the domestic theory and practice of valuation. All of them can be conditionally combined into three classes: comparative (analog), profitable and costly (normative). These approaches are used to evaluate any real estate, including land plots for various purposes.

As a rule, when assessing the market value of land plots, the sales comparison method, the allocation method, the distribution method, the land rent capitalization method, the residual method, and the intended use method are used.

The comparative approach is based on the sales comparison method, the allocation method, and the distribution method. The income approach is based on the method of capitalization of ground rent, the residual method, and the method of intended use. Elements of the cost approach in terms of calculating the cost of reproduction or replacement of land improvements are used in the residual method and the allocation method.

In foreign practice, the basis for assessing the value of land is market analysis, which includes stratification, determination of the unit of comparison and, in fact, analysis of market information.

Stratification means the classification of data on sales transactions and other market information into some homogeneous groups. When valuing land, the stratum should include market-exposed geographic areas, reflect differences in zoning and other land use regulations, and reflect possible land use options. Within strata (classes), land holdings are analyzed and assessed using common units of comparison. The selected units must correspond to the basic parameters by which the analysis and sale of land ownership in this market is carried out. As a result of stratification and expression of prices relative to common units of comparison, the nature and changes in the value of land holdings are determined. Three main methods are typically used to identify and visualize these trends: plotting market information on a value map, calculating descriptive characteristics, and plotting land value data.

Lecture No. 1 for Chapter 3.

State land cadastre as an information basis for land management

State Land Cadastre (GLC) in accordance with Art. 1 Federal Law "On the State Land Cadastre" is a systematic set of documented information obtained as a result of state cadastral registration of land plots, about the location, intended purpose and legal status of the lands of the Russian Federation and information about territorial zones and the presence of land plots located on and firmly connected with these land plots of objects.

The article outlines the concept of cadastral valuation, provides examples of building mass valuation systems in different countries, and also proves the advantages of innovations in the corresponding segment of Russian legislation.

Reinhold Wessely, Anton Lankin
State cadastral (mass) valuation for tax purposes - Russian and foreign experience
"Economic Strategies", No. 02-2008, pp. 124-131

Introduction and background

The authors of this article have worked together since 1998 as part of the implementation of four projects of the European Union TACIS Program aimed at supporting land reform in Russia. These projects included the following main areas:

• Development of the cadastre system in Russia in terms of legal, institutional and technical framework.
  
• Territorial planning.
  
• Development of a lending system secured by real estate.
  
• Valuation of real estate for tax purposes.
  

During this ten-year period, the cadastre in Russia underwent a transformation from a land cadastre to a comprehensive real estate cadastre as the legal basis for identifying and recording real estate, on the basis of which property rights and other rights are established.

Today, the cadastre is the basis for the implementation of many socially significant functions (see Fig. 1).

Cadastral (mass) valuation for tax purposes has become a key issue of economic development and the future financial basis of municipal budgets. Unfortunately, the provisions regulating the process of state cadastral valuation previously proposed within the framework of the draft Law on the State Real Estate Cadastre were excluded from the adopted version of this law, which leaves a number of issues unresolved.
The concept of mass assessment for tax purposes existing in Russia, even if not fully implemented, from a legislative point of view is an example of a modern system, superior to many similar systems already implemented abroad, with the possible exception of the systems used in some US states.

The concept of cadastral (mass) valuation as the basis for real estate taxation

One of the most important tasks of the European Union TACIS project "Reform of land and property relations II" is to assist the authorities of the Russian Federation, in particular the Federal Agency for Real Estate Cadastre and the Ministry of Economic Development and Trade, in the process of introducing a new system of mass cadastral valuation as a tax base real estate.

Two previous TACIS Projects provided support for the introduction of a mass assessment system in the Russian Federation:

• Within the framework of the European Advisory Service Project "Consultations on Land Policy Issues" ("Development of the system of state cadastral valuation of land in Russia") in 2001, the progress of cadastral valuation of urban and agricultural lands in pilot regions was analyzed.
  
• The project "Support for the implementation of mechanisms for regulating land and property relations", implemented in 2003-2005, made it possible to provide technical support to the cadastral agency in preparation for the implementation of a new system of mass cadastral valuation.
  

General Prerequisites

The Russian Federation is preparing to introduce a new system of taxation of real estate based on the value of the relevant property, close to the market value. The Federal Real Estate Cadastre Agency was tasked with creating a tax base on the basis that the real estate cadastre is the only and most complete list of real estate objects.

In principle, there are two main models that are used in different countries to establish the tax base for property taxation:

• a model based on a predetermined cost (“standard cost”) set by the government;
  
• a model based on market value or value approximating market value.
  

Determining the tax base on the basis of standard value seems to be “simpler” from the point of view of the assessment procedure: in this case there is no room for doubt, since we are talking about an abstract value. At the same time, using a value close to the market value is associated with certain difficulties, namely:

• markets are volatile;
  
• a very careful and more expensive approach to calculating (estimating) market value is required.
  

However, there are very compelling arguments in favor of using market value or approximate market value when taxing real estate.

First, there is the issue of fairness. The “standard” value that is deliberately set by government agencies, even if they use some kind of system, is unfair to the owner of the property, as well as to society as a whole. This system prevents all owners from being treated equally due to the different values ​​of their assets.

Secondly, there is a relationship between the value of real estate and the general economic situation, especially with regard to infrastructure investments, which increase the value of real estate. This relationship can be viewed as a process of distributing economic benefits between the state and citizens, or as encouraging government efforts to improve economic policies and increase investment in infrastructure and, in general, improve the standard of living of citizens.

Evaluation Concept

The concept of property rights, as well as related transactions such as sales and purchases, taxation and collateral lending, imply the need to determine the value of real estate. This is quite a difficult process. Over time, rules of thumb and international standards have emerged that are today considered the basic principles and rules of valuation used by professional valuers.

The theory and practice of assessing the value of real estate is based on three approaches that have their own characteristics (see Table 1).

Mass assessment

If there are a large number of properties to be appraised, individual appraisals become difficult and expensive. Therefore, there was a need to develop a concept of mass valuation that would meet the challenges of determining the value of a large number of real estate objects (mainly for tax purposes). As part of this method, a representative sample of real or proposed transactions is analyzed, after which the data obtained is considered typical for all objects of the same class, similar in location, size, quality, etc.

Thus, "mass valuation" can be defined as "a systematic assessment of a group of real estate objects on a given date using standard procedures, using general data based on statistical processing."

The main advantages of mass valuation for tax purposes:

• time (given that results are usually updated annually);
  
• costs – mass assessment is much cheaper than individual assessment;
  
• the possibility of objective and impartial analysis of market influence (statistically and geographically);
  
• the ability to select, search, compare and identify differences between real estate objects using a large amount of information;
  
• integrity of valuation results (fairness in calculating value, since each object is treated equally);
  
• availability of a large amount of data to substantiate and protect the results.
  

The main difficulties associated with the application of this concept are:

• the quality and reliability of input data, especially with respect to actual transaction prices, as well as other important factors;
  
• the presence of a functioning real estate market and a sufficient sample for research;
  
• availability of statistical data processing software necessary to analyze the sample and build an acceptable model.
  

International experience in building mass assessment systems

In individual real estate valuation, three classical valuation methods are used. Mass assessment, the need for which is described above, should also be based on these principles.

Mass valuation is used primarily for tax purposes and also, in some cases, for spatial planning and other similar economic and/or planning purposes. Standards and methods for real estate valuation are accepted in many countries of the world, including Russia.

European countries use a wide range of methods to establish the tax base on which the actual amount of real estate tax is calculated.

Example from Germany

In Germany, real estate taxation is based on the so-called “typical value of the property” (Bodenrichtwert). It is defined as the average cost, depending on location and expressed in euros/m2. This cost is determined annually, published and clearly presented to the public.

An independent commission of experts, consisting of professionals in various fields (surveyors, appraisers, real estate agents, etc.), is responsible for collecting information on transaction prices, establishing the typical value of real estate, creating market reports, valuation in case of forced alienation of property, as well as reports to parliament. Data for collecting information on transaction prices comes from various sources, especially from actual sales contracts that must be declared.

In accordance with administrative law, an appeal to the court is possible. However, given the professional competence of the commission members and the specifics of the data collection procedures, appeals are infrequent. Filing an appeal does not delay your taxes.

Examples of real estate taxation based on market value in the United States

In the United States, real estate taxes are used to finance government activities, especially schools, infrastructure, police, parks, and so on. Therefore, the collection of real estate taxes falls under the purview of government agencies and is characterized by a wide variety of methods and rates. In many states, the assessment of real property for tax purposes is organized at the county (district) level and is the responsibility of a "tax assessor" ("assessor"). To determine the tax base, classical mass assessment methods are used. The tax notice preparation and tax collection functions are separate from the tax assessor functions. An excellent example of a modern mass valuation system for real estate tax purposes is the system implemented in the state of Colorado, which, in a sense, can become a model for the cadastral (mass) real estate valuation system being implemented in Russia.

A tax notice (tax invoice) contains a description of the tax base and information about the tax rate. Accordingly, in this case it is possible to file an appeal regarding the contents of the tax bill, which may relate to both the tax base and the amount of tax. In practice, the grounds for appeal are quite limited: this is possible in cases where the property has been incorrectly characterized by type, size or location; There may also be cases of mathematical errors in calculations. Because the methodology used for mass real estate appraisals is established, tested, and open to the public, appeals rarely affect the methodology itself or the results resulting from its application.

Appeals are referred to an independent Appeals Board composed of full-time staff. If the board's decision is unacceptable to the appealing party, the only option is to appeal to the court. However, this happens very rarely. In any case, filing an appeal under no circumstances is a basis for deferring the payment of taxes. Moreover, failure to pay taxes within the appropriate time frame will result in the appeal being cancelled.

New law on real estate cadastre and state cadastral valuation

The relevance of issues related to the organization of state cadastral valuation has increased with the adoption of Federal Law No. 141 of November 29, 2004
"On amendments to Part Two of the Tax Code of the Russian Federation and some other legislative acts of the Russian Federation, as well as on the recognition as invalid of certain legislative acts (provisions of legislative acts) of the Russian Federation", introducing changes to Part II of the Tax Code of the Russian Federation, which came into force in force since January 1, 2006. This law determined the basis for the formation of the tax base - the cadastral value of a land plot - determined within the framework of the state cadastral valuation.

Today at the federal level there is no special regulation in the field of mass cadastral valuation for tax purposes. Separate provisions are contained in various federal regulations of the Russian Federation (Land, Tax Codes of the Russian Federation, Decrees of the Government of the Russian Federation No. 945 and No. 315, Order of the Ministry of Economic Development and Trade of the Russian Federation No. 222), but in general they are not comprehensive in nature and sometimes contradict each other.

The new Federal Law of July 24, 2007 No. 221-FZ “On the State Real Estate Cadastre” came into force on March 1, 2008 (with the exception of certain provisions). This law regulates cadastral registration of land plots, capital construction projects, buildings, structures, premises, etc. According to this Federal Law, the state real estate cadastre is a federal state information resource. The law defines the procedures for maintaining the cadastre and accounting (grounds, terms, objects of accounting, etc.) for the implementation of cadastral activities.

As mentioned above, unfortunately, the provisions governing issues of state cadastral (mass) valuation for tax purposes, i.e. the fiscal function of the cadastre were not included in the text of this law.

It is expected that they will become the subject of a separate law or will be introduced as amendments to the current Federal Law of July 29, 1998 No. 135-FZ “On Valuation Activities in the Russian Federation.”

The main objectives of special legislation regulating issues of state cadastral (mass) valuation for tax purposes should be:

• creation of special legal requirements for cadastral (mass and value-based) valuation;
  
• ensuring coordination between the legal and administrative aspects of assessment, assessment and further administration of taxation;
  
• delimitation of powers and responsibilities of the parties involved in the assessment process;
  
• ensuring interdepartmental information exchange.
  

Experience in conducting state cadastral land valuation

Today, the regulatory framework for the state cadastral valuation of land is made up of Decree of the Government of the Russian Federation No. 945 of August 25, 1999 “On the state cadastral valuation of land” and Decree of the Government of the Russian Federation No. 316 of April 8, 2000 “On approval of the Rules for conducting state cadastral valuation of land."

The Government of the Russian Federation has established general methodological principles for the state cadastral valuation of land, depending on the classification of land according to its intended purpose and type of functional use.

The first round of state cadastral valuation of land for tax purposes was carried out throughout the Russian Federation in the period from 1999 to 2005. In most constituent entities of the Russian Federation, in the period from 2006 to 2007, work has already been carried out to update the results of cadastral valuation of such important (from the point of view in terms of taxes received) categories of land, such as land of settlements and agricultural land.

An analysis of the methods used and the results obtained showed that, in general, most of them comply with generally accepted international standards and principles of mass valuation for tax purposes, very precisely and transparently formulated in the book “Organization of Real Estate Valuation and Taxation” edited by the famous scientist and practitioner of mass valuation Joseph K Eckert.

Prospects and consequences

Many issues related to the further direction of development of the cadastre system in Russia in general (and state cadastral valuation in particular) were covered in detail in the recently published book by the former head of Rosnedvizhimost M.V. Mishustin "Information and technological foundations of property tax administration." This monograph is a convenient and comprehensive information resource containing a broad analysis of various aspects related to cadastre information technologies and issues of property tax administration in Russia based on the new unified system of the state real estate cadastre. Moreover, the state real estate cadastre is considered in this context as a comprehensive integrated multifunctional (electronic) source of official information.

The Unified State Real Estate Cadastre has three main functions - accounting, fiscal and information. All these functions are discussed in detail in the book, including from the point of view of further development and optimization of the property tax administration system.

The book contains many references to international experience in organizing property tax administration systems, as well as analysis of such basic system-forming issues as IT support, cadastre technologies, spatial data management, interdepartmental interaction and information exchange. The author also analyzed the impact of the development of the real estate cadastre system on social development through the support of the system of registration of property rights and the further provision of their guarantees by the state.

The material is structured in such a way as to emphasize the priorities of issues of creating and further improving the property tax administration system. The book analyzes the essence of tax administration, in particular, the main definitions related to real estate taxation and the cadastre system are presented and the main trends in their development are considered, as well as the legal basis of tax administration and the socio-economic consequences of the introduction of a real estate tax. The author also writes about the systematic measures necessary for the successful introduction of a new real estate cadastre system in Russia, taking into account both organizational and technical problems. A number of characteristics and parameters are proposed to assess the effectiveness and efficiency of the implementation of the new system and its further operation.

Considering the fact that the cadastre system was “born” out of the need to implement the fiscal function in many European countries at the end of the 18th century, issues related to this function are considered in great detail. The main tool for its implementation is mass (or, in other words, tax) assessment of real estate. The author examines the main approaches and possible solutions applicable in Russian conditions, taking into account modern international experience in this area, with an emphasis on the issues of institutional structure of the system of state (mass) cadastral valuation for tax purposes.

Prospects

The authors of this article are convinced that over time, procedural and legal issues related to the implementation of the system of state cadastral (mass) valuation of real estate for tax purposes will be resolved and such a system will be successfully implemented on the basis of the new state real estate cadastre. This, undoubtedly, should have a positive impact on the development of regions and municipalities, as well as help resolve issues related to land privatization.

Economic impact of the new real estate taxation system on municipalities in Russia

It is obvious that taxation of real estate (and land in particular) on an ad valorem basis, in addition to replenishing the budgets of municipalities, should and is becoming a means of increasing the efficiency of resource use, primarily urban land. The introduction of a taxation system based on the results of state cadastral (mass) valuation entails a number of important economic consequences for the development of municipalities and the local government system itself.

Consequence 1 – self-determination and financial independence of municipalities. Since land tax revenues are directed entirely or mainly to the municipal budget, municipalities gain greater financial independence and can use such additional funds to solve immediate problems and meet urban needs.

Consequence 2 – competition between municipalities. As a result, competition may arise between municipalities in order to (1) attract business, (2) create more favorable living conditions, or (3) improve social conditions. The consequence of such decisions may be a change in the economic and social structure of cities, their relationships, as well as the emergence of unique distinctive features.

Consequence 3 – privatization of urban land. The land taxation system currently used in Russia can be considered based on market value. Municipalities cannot tax their own land (the land under and around high-rise buildings) while having responsibilities for maintaining order in these areas, etc. As a result, municipalities will be inclined to privatize such land in favor of apartment owners, which will create the basis for the concept of condominiums.

Consequence 4 – creation of a condominium system. Russia's housing stock is generally in very poor condition. Statistics show that the average remaining life of buildings is 15 years.

The condominium concept, as practiced in the West, defines the property as an undivided portion of the land and common areas plus a specific residential unit (apartment). As a consequence, (co)owners of condominiums have obligations to maintain their (all) property in proper order, which should ultimately increase the life of the housing stock in Russia.

conclusions

• Cadastral valuation of real estate, carried out on the basis of a scientifically proven methodology and using adequate unified software, makes an important contribution to the economic development of Russia.
  
• It strengthens the possibilities for financial self-determination of municipalities.
  
• It will improve economic and social conditions in all municipalities.
  
• In the long term, the new system will encourage municipalities to further privatize land and support the development of the concept of condominiums, which will help preserve and extend the life of the housing stock in Russia.
  

Conclusion

The lack of a concept for the institutional organization of assessment for tax purposes and a comprehensive legal framework (federal law) regulating the issues of conducting cadastral assessment (land and real estate) for tax purposes leads to the emergence of a dangerous gap, which in the future will complicate the situation. In particular, this concerns the procedure for appealing the results of mass cadastral valuation, as well as other issues.

Since the technologies and methods for carrying out cadastral (mass) valuation are very complex, valuation procedures should be focused on issues of efficiency and effectiveness of the entire process in order to achieve the basic principle of taxation - legality and fairness in relation to legal entities and individuals. Taking into account the fact that revenues from land tax are a significant source of local (municipal) funding and budget, social issues of determining the tax base are becoming of fundamental importance at the present moment.

The optimal solution is to use mass valuation methods based on a unified methodology using standardized software for calculating cadastral value (based on data on the situation in the real estate market), which will ensure efficiency, continuity, impartiality, and comparability of results throughout the region and the country as a whole. . This task should be solved by a specialized organization.