Land payment, land valuation

General Provisions

Fee for land is an important element of land relations and represents mandatory payments collected from owners or users of land plots for the right to use them. Fee for land is an instrument of state control over the use of land resources and serves as a source of revenue for the budget. This is also a means of stimulating more efficient and rational use

The main types of land fees are:

• Rental Payment — the amount that land lessees are obliged to pay to the landowner or state authorities (if the land is in state or municipal ownership). Rental Payment is determined on the basis of the lease agreement and may depend on market conditions, purpose of the land land.

• Land Tax — mandatory payment collected from landowners based on the cadastral value of the land. The tax rate is set by local authorities and may vary depending on categories of land, their purpose, condition, and territorial location.

• State fee — [fee](/enc/33251/ "Definition of the term

"Fee" in the legal encyclopedia), charged for performing specific actions with land, such as registration of land rights, processing land transactions, granting permits for changing the purpose of a land plot.

The main objective of land fees is to create an effective mechanism for utilizing land resources, preventing their non-targeted use, as well as stimulating the improvement of land quality and its proper utilization. Payments also contribute to balanced development of territories, their social-economic infrastructure and ecology.

Land appraisal represents process of determining the market value of land plots or their cadastral value. Land appraisal is an important tool for fair and efficient regulation of land relations, as well as for ensuring the accuracy of taxation and other land payments. It is necessary for making decisions regarding purchase, sale, lease, gift, and also for calculations in cases of taxation and arbitration disputes.

Land appraisal is carried out based on various methodologies and includes several stages:

• Cadastral valuation of land — this is process of determining the value of a land plot based on its cadastral characteristics, such as area, location, purpose and quality. Cadastral value is established for taxation purposes and is collected as land tax. It may be revised and changed based on market changes and analysis of the land market situation.
• Market valuation of land — this is

process, during which the actual market value of a land plot is determined taking into account its demand and supply. Market valuation is important for sales, rental, mortgage, and other land-related transactions. It is carried out by independent appraisers who consider factors such as the location of the plot, infrastructure, legal purity, availability of utilities, ecological condition and other aspects.

• Expert evaluation

lands — is used in cases where market valuation is impossible or requires specialized knowledge. Experts can assess land for the purposes of judicial proceedings, resolving disputes between parties, or for determining value for taxation purposes.

Land valuation methods may include:

• Method of comparative sales — is based on the analysis of market prices for similar land parcels that have been recently sold. This method is used to determine the market value of land parcels based on existing market conditions.
• Income method — is applied for evaluating land parcels that can generate income from their use, for example, [land

agricultural purpose](/enc/21049/ "Definition of the term 'Agricultural Lands' in the legal encyclopedia"), commercial land plots. The evaluation is carried out based on the expected income from the future use of the land.

• Cost method — used to assess the value of land taking into account costs for its improvement or development. This method is applicable for evaluating land plots where construction or other [types](/enc/31972/ "Definition of the term 'Types' in

"(legal encyclopedia) transformations."

Land valuation plays a key [role](/enc/13150/ "Definition of the term 'Role' in the legal encyclopedia) in ensuring fairness and transparency in land transactions, taxation, and state oversight. It enables government agencies and local self-government bodies to properly regulate relationships between owners, lessees, and the state, as well as efficiently utilize land resources. Systematic and accurate land valuation helps stimulate [investments](/enc/11264/ "Definition of the term 'Investments' in the legal encyclopedia) in land, improve [use](/enc/32013/ "Definition of the term 'use' in

(from the "legal encyclopedia") land plots and increase their value on the market.

Thus, fee for land and land valuation are essential components of effective regulation of land relations in Russia. They contribute to the rational use of land resources, ensuring fair conditions for participants in the land market and maintaining economic stability in the country.