Administrative claimants in cases challenging the results of determining the cadastral value of real estate

With an administrative claim for reconsideration of the cadastral value, legal entities and physical persons owning the real estate object on the right of ownership, perpetual (indefinite) use or lifelong inheritable possession, as well as other persons, if the results of determining the cadastral value affect their rights and obligations (first and second paragraphs of Article 24.18 of the Law on Valuation Activities, Articles 373, 388, 400 of the Russian Tax Code).

With regard to real estate located in state or municipal ownership, state authorities, local self-government bodies, acting on behalf of the corresponding public-law entity, have the right to submit an application for reconsideration to the court at the location of such real estate.

cadastral value.

Pursuant to the provisions of paragraph 2 of Article 3.3 of the Federal Law dated October 25, 2001, No. 137-FZ "On Introduction into Force of the Land Code of the Russian Federation," disposal of land plots, state ownership on which demarcation has not been carried out, is conducted by local self-government bodies, and in cases provided for by law - by federal executive authorities, executive authorities of the subjects of the Russian Federation. Taking this into account, the aforementioned bodies are entitled to submit an application for reconsideration of the cadastral value of the relevant

land plots

The former owner of the real estate object has the right to submit an application for reconsideration of its cadastral value if the results of the cadastral assessment affect the rights and obligations of such person as a taxpayer, in the tax period during which the application is submitted.

Participant in shared ownership independently participates in tax relations and may exercise the right to reconsider the cadastral value independently of the consent of other co-owners (paragraph 1 of Article 45, paragraph 2 of Article 392, paragraph 3 of Article 408 of the Russian Tax Code, Article 24.18 of the Law on Appraisal Activities).

Tenants of real estate owned by the state or municipal authorities have the right to submit the aforementioned statement in cases where rent payment is calculated based on the cadastral value of the real estate object.

If the rent for using property owned by citizens and (or) legal entities is calculated based on its cadastral value, the tenant has the right to dispute this value when the owner's consent to such a review is expressed in the contract or another written form.

Person, having an exclusive right to repurchase or lease a land plot owned by the state or municipality, is entitled to dispute its cadastral value if the repurchase price or rental payment for such a plot is calculated based on its cadastral value (article 39.20 of the Land Code of the Russian Federation, points 1 and 2 of Article 2, points 2, 2.2 of Article 3 of Federal Law No. 137-FZ of October 25, 2001 "On the Introduction into Force of the Land Code of the Russian Federation"

The Prosecutor, in cases provided for by Article 39 of the Russian Code of Administrative Procedure (КАС РФ), has the right to file a statement with the court challenging the results of the determination of cadastral value in defense of the rights, freedoms, and legitimate interests of citizens, the interests of the Russian Federation, subjects of the Russian Federation, and municipal formations.

The question of whether local government authorities have the right to challenge in court the results of determining the cadastral value of a land plot not owned by the municipal formation but located on its territory, in cases where upon the application of the owner of this land plot, its cadastral value

As follows from the Ruling of the Constitutional Court of the Russian Federation dated 05.07.2016 No. 15-P "On the case concerning the review of the constitutionality of part one of article 24.18 of the Federal Law 'On Valuation Activities in the Russian Federation' in connection with the complaint by the administration of the municipal formation of the city of Bratsk", in the event of a reduction in the cadastral value of a land plot based on the determination of its market value by the municipal authority, on the territory

which may exist, may have a real legal interest implying the possibility for local government authorities to independently challenge the relevant decision made by the commission on initiative of the owner of this land plot. Meanwhile, the provision of part one of article 24.18 of the Federal Law "On Valuation Activities in the Russian Federation," completely excluding such possibility, essentially disproportionately restricts constitutional guarantees for protection of rights and legitimate interests

municipal formations.

As a result of considering the relevant case, Constitutional Court of the Russian Federation deemed not to contradict the Constitution of the Russian Federation [provision](/enc/9743/ "Definition of the term «Provision» in the legal encyclopedia) of Part 1 of Article 24.18 of the Federal Law "On Appraisal Activities in the Russian Federation", as establishing within the system of current legal regulation, in order to ensure the rights and legitimate interests of owners of real estate located on territory

the general procedure for challenging by local self-government bodies the results of determining cadastral value, which envisages the possibility of such challenges regarding real estate objects owned by the municipality.

In addition, the Constitutional Court of the Russian Federation in the aforementioned Decision recognized as incompatible with the Constitution of the Russian Federation, its Articles 46 (Part 1), 55 (Part 3) and 133, the provision of Part 1 of Article 24.18 of the Federal Law "On Appraisal Activities in the Russian Federation" - to the extent that it prevents local self-government bodies from challenging in court the results of determining the cadastral value of a land plot not owned by the municipal formation, but

located on its territory, in cases where, upon the application of the owner of this land plot, its cadastral value was significantly reduced based on the establishment of market value, which may affect the rights and legitimate interests of this municipal formation, including those related to tax revenue inflows into the local budget.

At the same time, it should be taken into account that the court's decision court establishing the cadastral value at the level of market value does not affect the rights and legitimate interests of the tax authority. As follows from judicial acts in case No. А76-19190/2014, the Company approached the court with a claim to establish the cadastral value of the land plot owned by it on the right of ownership at the level of market value. The court of the first instance granted the stated claims.

The Federal Tax Service (FTS) submitted an application to the court of first instance for reconsideration of the judicial decision based on newly discovered circumstances, since the FTS was not involved in the case as a third party [party](/enc/31941/ "Definition of 'Party' in the legal encyclopedia), not asserting independent claims regarding the subject of the dispute. The tax [authority](/enc/33186/ "Definition of 'Authority' in the legal encyclopedia) also noted that if this application is denied, it may result in a situation where the tax [authority](/enc/33186/ "Definition of 'Authority' in the legal encyclopedia) would be forced to make an incorrectly determined

cadastral value for the calculation of land tax.

Denying the satisfaction of the tax authority's application, the first-instance arbitral court relied on the absence of evidence of the applicant's rights being violated, as well as the lack of additional obligations arising for the Inspection in connection with the entry into force of the court decision in this case. The first-instance court also concluded that there were no new or newly emerged circumstances. Among other things, the first-instance court noted that the applicant did not provide sufficient facts that would have legal significance for rendering a decision on the merits of the dispute, would affect the justification and legality of the court decision, or would contradict the conclusions court

"Definition of the term 'Court' in the legal encyclopedia") of first instance. The applicant's arguments do not lead to another legal evaluation of the legal relationships in this case."

The Federal Tax Service of Russia submitted an appellate complaint to the court regarding the decision of the first instance court. The appellate court left the decision of the first instance court unchanged, since the presence of public-law functions of the inspection in monitoring compliance with Russian Federation legislation on taxes and fees does not indicate a decision concerning the rights or obligations of the inspection. In addition, the appellate court noted the absence of evidence of the existence of a property-right interest of the inspection in challenging the court's decision. The cassation court confirmed

the corresponding position (Ruling by the Arbitration Court of the Urals District July 20, 2016 in Case No. A76-19190/2014).