Each person or company must pay different types of taxes, depending on the characteristics of their work and available property. At the same time, the state often provides certain taxpayers with the opportunity to take advantage of numerous benefits that reduce the tax burden. Particularly often interested in property tax benefits, which may be federal or regional. They are assigned to certain categories of the population, and often they can be used by certain organizations working in significant areas of the economy.
Types of benefits
Property tax benefits are assigned both at the federal level and at the regional level. In the first case, residents of any region can use them if they meet all the conditions and requirements.
On regional decisions, citizens and company representatives should independently receive background information on property tax rates and benefits. To do this, you need to contact the department of the Federal Tax Service at the location of a particular property, and you also need to find out if a particular taxpayer is entitled to use the benefits.
Nuances of the appointment of federal benefits
Federal property tax exemptions apply to all regions, so regional authorities cannot cancel or change them. They can only add other measures of assistance.
Federal support is awarded for various reasons. Count on it can:
- Heroes of the USSR or the Russian Federation;
- Holders of the Order of Glory of the third degree;
- invalids of the first or second group;
- participants in hostilities;
- war veterans;
- disabled since childhood;
- military personnel who have served for at least 20 years who have been dismissed due to the appearance of certain health problems;
- family members of the deceased military;
- pensioners;
- people affected by the Chernobyl nuclear power plant or other accidents at such facilities.
In addition, the reference information on property tax benefits indicates that at the federal level this type of fee does not have to be paid in relation to buildings:
- household objects;
- various structures, the area of which does not exceed 50 square meters. m., but they should be located on land intended for individual housing construction or private household plots, as well as for summer cottage or garden economy;
- premises or buildings used in the form of workshops or for engaging in various creative activities.
People and company representatives must confirm their right to tax benefits on property tax with official documents.
Regional support
In addition to federal benefits, you can count on exemptions assigned by the regional authorities. Regions can enjoy numerous other preferences assigned to different individuals or even companies. However, they should not be provided for by federal laws, and should not violate them in any way.
To find out what privileges for property taxes are assigned in a particular region by individuals or companies, you need to contact the Federal Tax Service, which is located at the place where the specific property is available.
On what conditions are provided?
Exemption from payment of this fee can be obtained not only due to the availability of evidence of compliance with the law, but also subject to other requirements.
These include the fact that the property of an individual should not be used by him for profit. The second significant condition is that the property must be legally registered in the ownership of the payer.
Features of the application of deductions
You should understand not only what rates and benefits are set for property taxes, but also what opportunities taxpayers can use to reduce the fee. This includes the application of tax deductions for this tax.
The deduction is represented by the amount of funds by which the tax base for a specific property is reduced.
It is not required to independently apply for the use of deductions, since they are relied on to each taxpayer, so employees of the Federal Tax Service calculate them themselves.
Size deductions are equal for:
- apartments - cadastral price of 20 square meters. m .;
- rooms - the price of 10 square meters. m .;
- residential building - the cost of 50 square meters. m .;
- a single complex in which there is at least one residential premises or building - 1 million rubles.
Even provided that one object belongs to two owners at once, a deduction is issued only for the real estate itself, after which its size is distributed in accordance with the shares of the owners.
Often people have such small apartments or rooms that they simply don’t have to pay tax, because after subtracting the return, a negative value is obtained.
What facilities can I get benefits?
Property taxes are regulated by the Federal Tax Service, rates and privileges for which may not be paid by some citizens by decision of the authorities. At the same time, you can count on a reduction or exemption from the fee only on certain real estate objects, which include:
- residential premises represented by full-fledged apartments or separate rooms;
- residential buildings, and this includes not only private houses, but even summer houses or garden houses;
- garages or special parking lots, registered in the ownership of a citizen;
- household buildings, the area of which does not exceed 50 square meters. m., and they should be located in the territories used for the construction of private houses, maintaining private household plots, creating a garden or gardening;
- special premises or structures used for creative activities, for example, an atelier or studio, but only individuals who are engaged in such work professionally can use the benefits in relation to these buildings;
- living quarters used to organize a museum, library or other institution of high public importance.
Also, local authorities can offer property tax benefits in relation to other objects, so they can expand the above list, although they do not have the opportunity to narrow it down.
How is the tax base calculated?
It is important for each taxpayer to know the rates and benefits from property taxes in order to independently correctly determine how much money should be paid to them.
In 2018, in many regions, the inventory value of objects is taken into account to determine the amount of this tax. This indicator is multiplied by a special deflator coefficient, which allows you to determine the size of the payment.
Since 2020, in all regions, it is precisely the cadastral price of objects that should be used for calculation.
The tax rate varies for different rooms, so it can be equal to 0.1%, 0.5% or 2%. If the levy for ordinary residential premises is calculated, then the return is deducted from the cadastral value, after which the resulting value is multiplied by 0.1%.
On what other conditions are benefits offered?
The provision of property tax benefits is possible subject to the conditions:
- it is drawn up exclusively for one object belonging to a certain type of real estate, and the owners themselves decide which object will be exempted, but for the rest of the property they will have to pay the full amount of tax;
- buildings or premises must be correctly registered in the property of the taxpayer, therefore it is not allowed to take advantage of support for an apartment in which a person is simply registered or lives;
- it is impossible to take advantage of the property tax exemption for an object used in the process of entrepreneurial activity for profit, and only workshops used for creative work will be an exception;
- often, one person has several reasons for applying for benefits at once, and in this case he can use only one opportunity.
Only subject to these conditions can you get relief from the state.
Rules for registration
If the taxpayer finds out that he can use the privilege, then he must independently deal with its registration. If they do not take any action, this will lead to the fact that he will still have to fully transfer payments to the budget for his property.
The registration procedure is divided into successive stages.
| Stages of registration of benefits | Process features |
| Preparation of documentation | This includes a correctly prepared application for a property tax exemption, and papers confirming a person’s right to help from the state. Evidence may be presented by a pension certificate, disability certificate or other documents. |
| Transfer of a package of documents to employees of the Federal Tax Service | This must be done before May 1, since it is from this time that the dispatch of receipts to taxpayers begins. |
| Awaiting notice | It should already indicate the use of benefits, and often it does not come at all, which indicates that the citizen received full exemption from payment of this fee. |
If a person, if there is one reason, can count not only on privileges on property tax, but also on other fees, for example, on transport tax, then he can indicate both taxes in one application, which will save his time on processing various exemptions.
How can documents be submitted?
An application for the provision of property tax concessions simultaneously with other documents may be submitted to the FTS office in various ways:
- when you personally visit the institution, and you must have the original passport with you;
- electronically, for which you need to register and log in to your account on the official website of the Federal Tax Service;
- sending by mail, and for this it is necessary to use only registered letters, and it is also desirable to pay a notification of delivery and an inventory of the investment.
It is allowed to additionally take advantage of the assistance of a proxy who can transfer documentation to the employees of the Federal Tax Service on behalf of the applicant. For this, he must have a power of attorney certified by a notary.
Is it necessary to confirm the right to a benefit?
When providing property tax benefits, there is no need to annually confirm your right. Therefore, it is enough to collect and transmit the necessary documents only once.
The statement itself must indicate that the benefit should be assigned indefinitely.
The exemption from payment will be valid until it is canceled by any law.
Who else can claim relief?
Benefits can be assigned to other categories of the population, but only by issuing an appropriate decision by the regional authorities. Most often they are offered in different regions to citizens:
- In respect of property tax, benefits to large families are often offered;
- often single mothers can apply for them;
- property tax for low-income families is often reduced.
Benefits for pensioners on property tax are assigned by the federal authorities, so pensioners can draw up this relief without any difficulties.
Are benefits offered to companies?
Different organizations can also own a variety of property, for which taxes must be paid. Some firms may take advantage of benefits when paying property tax, and they may be granted indefinitely or for any specific period of 3, 5, or 10 years.
This tax is not paid by organizations:
- religious concessions;
- execution of criminal sentences;
- represented by associations of persons with disabilities, but property must be contained in the charter documents of this enterprise;
- pharmaceutical, if their fixed assets are used to create preventive or therapeutic agents against various epidemics;
- working in Skolkovo;
- who have on their balance sheet oil and gas property intended for exploration in the seas;
- shipbuilding firms, but the property should be used to build ships or to repair them.
Art. 381 of the Tax Code contains a complete list of all companies that can enjoy benefits when paying property tax. It is the accounting departments of different companies that independently calculate and pay this fee, and also need to learn about the possibility of using various concessions from the state.
Is the fee paid by budget organizations?
Budget institutions are required to pay property tax, and if the residual price is taken into account for this, the rate is 2.2%, and if the cadastral value, then the rate of 2% is used.
For these organizations there is no need to pay a fee for the funds specified in Art. 374 Tax Code. Additionally, various exemptions for such institutions are established by regional authorities, so in some cities there is no need to pay this fee.
Finally
Summarizing the foregoing, it is taken into account that many categories of the population have the opportunity to use benefits when paying property tax. They are represented by a complete exemption from its payment, but only for one type of property. To use them, you need to prepare a statement and other documents proving their right to such an exemption.
In addition, citizens can use deductions, due to which the amount of the fee paid to the budget is significantly reduced.
Taxpayers themselves must deal with the registration of such an exemption, as this is not the responsibility of the Federal Tax Service. If you do not complete this process in a timely manner, you will have to pay the full amount of tax on a common basis.
Even some organizations may benefit from property tax relief. To do this, they must meet certain requirements. Usually such support from the state is assigned only to the most significant and necessary organizations for the country. The same applies to budgetary institutions.
Property tax benefits are assigned both by federal and regional authorities, so every taxpayer who wants to reduce the tax burden should regularly monitor all news regarding tax payments.
