The legislation of the Russian Federation provides for federal, regional and local taxes. They should be credited to the appropriate budget. A significant role for the financial system of the state as a whole, as well as for specific regions and municipalities, is played by local taxes. Who installs them? What are the features of their calculation and payment to the budget?
Who introduces local taxes?
Local taxes and fees in the Russian Federation are established by the relevant Code, as well as by regulations of municipalities - administrative-territorial units of self-government. They are mandatory for payment to the budget by subjects of commercial and other legal relations, unless otherwise regulated by law. Local taxes and fees are introduced, as well as expire, therefore, at the federal level, however, their necessary detail may well be carried out by municipal authorities. What exactly can be specified by local structures? In accordance with the provisions of the Tax Code, municipalities have the right to regulate:
- the value of bets;
- procedure for paying fees;
- the timing of the transfer of taxes to the treasury.
However, such detailing is applicable only if the provisions related to these clauses are not enshrined in the Code. Regional and local taxes and fees that are not provided for by the relevant federal legal act cannot be established. At the same time, the Code may determine special taxation regimes, as well as the procedure for their collection.
Local taxes in federal cities
Some specificity in relation to the corresponding budgetary obligations is peculiar to Moscow, St. Petersburg and Sevastopol. The fact is that these cities are in federal subordination. Thus, while local taxes and fees are introduced throughout the rest of Russia by municipalities, in Moscow, St. Petersburg and Sevastopol, the corresponding payments are established in acts that have regional status.
What taxes are local?
The legislation of the Russian Federation defines the following types of payments in question:
- land tax;
- property tax levied on individuals.
Consider the specifics of both taxes in more detail.
Land tax
Land tax is regulated by Chapter 31 of the Tax Code. We will study the most remarkable provisions of this source of law that are relevant to the collection in question.
Land tax is paid only by those legal entities that operate in the territory of a particular municipality. In this case, taxpayers may be:
- physical person;
- IP;
- organizations.
The criterion that determines the occurrence of an obligation to pay the appropriate fee to the budget by the indicated entities is the availability of land ownership in or in unlimited use. As for the plots that belong, for example, to mutual funds, the management company is recognized as a taxpayer. The fee is paid at the expense of the assets held by the fund.
Organizations, individuals and entrepreneurs who use the land plots on the basis of the right of gratuitous use on an urgent basis, or on a rental basis, must not pay land tax. Cannot be recognized as objects of taxation:
- plots that are legally withdrawn from circulation;
- territories on which particularly valuable objects of cultural heritage are located, including those included in the relevant international list;
- sites on which historical and cultural reserves are located, as well as objects of archaeological heritage;
- territories included in the forest fund;
- plots on the territory of which water bodies belonging to the state are located as part of the corresponding fund.
Tax base for land collection
The base for the type of collection under consideration is defined as the cadastral value of the plot at the beginning of the year, which is the tax period. If the territory is registered with Rosreestr during the year, then the corresponding base is calculated on the basis of the cadastral value of the object at the time of registration with the specified agency.
It is worth noting that organizations must determine the size of the tax base on their own. The source for obtaining the relevant indicators should be the information included in the state cadastre of real estate. The tax base should include every site owned or used by the organization on an ongoing basis. Similarly, SPs must also determine the corresponding indicator independently - in relation to the plots involved directly in entrepreneurial activity. The data source will also be the state cadastre.
In turn, the taxes of the local budget in the form of land taxes payers in the status of individuals should not be calculated independently. The territorial structures of the Federal Tax Service carry out this work for them on the basis of information provided in the order of interdepartmental interaction by the Rosreestr.
Tax and reporting periods for land tax
Local taxes and fees are introduced, as we noted above, at the level of federal law. He also determines the key characteristics of the relevant budgetary obligations. In particular, tax and reporting periods. For land collection, the tax period is a calendar year. Reporting - a few: 1 quarter, six months, as well as the first 9 months. But they apply only to taxpayer organizations. Individuals may not pay attention to this characteristic. As in the case of many other taxes and fees stipulated by the legislation of the Russian Federation, the municipal authorities or the corresponding structures in cities of federal significance have the right not to establish the relevant periods.
Land tax rate
In turn, the rate at which local taxes and fees are levied is established by the municipality. Or, if we are talking about Moscow, St. Petersburg and Sevastopol, the legislative authority of the city of federal significance. However, at the level of the Tax Code its limiting values can be fixed.
So, for example, the rate in question cannot be more than 0.3% for plots of the following categories:
- those that are assigned to territories used for agricultural needs;
- those that are used as part of the housing stock;
- those on which the components of the engineering infrastructure related to the housing and communal complex are located (not counting the percentage of plots that are not related to the housing stock and related facilities);
- used for conducting summer cottage economy;
- involved for the needs of defense and limited, due to the provisions of the law, in circulation.
The rate cannot be more than 1.5% for other types of sites.
Land tax in Moscow municipalities
Regarding the determination of the considered parameter of the land tax in Moscow in some cases, a slightly different procedure may apply. There are a lot of local taxes and fees in the share of the budget of the Russian capital, however, the Moscow authorities have the right to allow the collection of appropriate payments to municipal structures that are formed on the territory of the city. This may be accompanied by the establishment of differentiated rates in accordance with the category of the site and its location in Moscow.
Payment of land tax
The deadlines for taxes and fees to be transferred to the local budget, including that paid by land owners, are determined at the level of municipal laws or sources of law issued by the authorities of Moscow, St. Petersburg and Sevastopol. In some cases, the relevant payments may involve the transfer of advance amounts to the budget.
Not later than February 1 of the year that follows the tax, organizations that are payers of the tax in question must submit a declaration to the Federal Tax Service in the prescribed form.
The taxpayer must transfer the full amount of the fee before November 1 of the year following the tax period.
Personal property tax
Local taxes and fees also include payments levied on individuals who own residential real estate. Regarding their transfer to the budget, there are a number of features.
The fact is that until 2015, citizens must fulfill the corresponding budgetary obligations based on the calculation of property tax amounts based on the inventory cost of housing. Since 2015, cadastral indicators are also present in the structure of the “formula” of the collection calculation. It is assumed that from 2019 they will be applied without taking into account the inventory value.
What does it mean? The norms of the law that were in force until 2015 provided for the collection of about 0.1-0.3% (the specific value was determined in the laws of the municipality or city of federal significance) of the inventory cost of apartments and houses owned by citizens. The tax base on the basis of the corresponding indicator did not imply a large financial burden on citizens in terms of fulfilling this budgetary obligation.
Another thing is when the property tax is calculated on the basis of the cadastral value of housing. The fact is that its maximum proximity to the market is assumed. Thus, a significant increase in the burden on the personal budget of the taxpayer is possible in terms of fulfilling the corresponding obligation to the state.
At the same time, until 2019, the legislation of the Russian Federation establishes a transition period, within which the calculation of the property tax will, on the one hand, imply the inclusion of tax indicators in the "formula", as we noted above, this will, one way or another, reduce absolute amount of payment. On the other hand, deductions are recorded in the legal acts of the Russian Federation regulating the budgetary obligation in question. Their importance is determined, firstly, by a specific type of real estate, and secondly, by its area.
Thus, the increase in the tax burden on citizens who own residential property is assumed to be gradual. In addition, in many cases, the size of the deduction provided for by law is sufficient so that a person does not feel a strong financial burden due to the need to fulfill obligations to the state.
As in the case of land tax, property tax rates on individuals must be determined at the level of the municipal authorities or the corresponding structure in the city of federal significance. However, the components of the “formula”, which take into account, firstly, the inventory value, and secondly, the deduction, are set at the level of federal law.
Property Tax Formula
Thus, the value of property tax on individuals is determined by:
- the cadastral value of the object, and until 2019 - partially inventory;
- area of housing;
- deductions;
- rates accepted in a specific region.
Note that the main work on the calculation of tax should be carried out by the Federal Tax Service. Citizens generally will not need to study the intricacies of the formula in question.
So, we studied how local taxes and fees are introduced, examined the main characteristics of property payments for land ownership, as well as fees from property owners. These obligations of citizens and organizations are important primarily in terms of the sustainability of local budgets. Municipal authorities, based on socio-economic factors, can at the same time independently regulate the degree of financial burden on taxpayers by changing rates or the procedure for paying fees.