On Tuesday, 30thof April, the Ministry of Justice submits for public consultation a new draft of the Cabinet Regulations “Cadastral valuation regulations” developed with the aim of improving the cadastral valuation methodology, providing the public with high-quality and fair cadastral value of all real estates determined in accordance with the real estate market information.
The Minister of Justice Jānis Bordāns emphasizes that the improved methodology will ensure objective calculation of the cadastral value for each property – citizens must understand the real value of their property and the state should understand the total economic value of real estate.
What does it mean? A fair evaluation system that takes into account the year of the building construction, its type, mode of use and location. A fair approach to the building lands of multi-apartment means that in the valuation, the standard area (the land under the house and the adjacent functionally necessary land) is separated from the rest of the area, which is used by the residents of other houses as well and which further will be valuated as green areas. It is of particular importance in cases of forced lease, admits the Minister.
“The new improved cadastral valuation methodology may be implemented only if the government-forming parties agree on the property tax reform – the state must have access to objective information on the cadastral value but it must not disproportionately increase the tax burden on the primary home of each resident” says J. Bordāns.
A written opinion on the draft Cabinet Regulations can be sent to the e-mail address firstname.lastname@example.org 14 May 2019.