Everyone knows that the main source of financing the state economy is taxes and fees. And not only central authorities need funds, but also regional ones. Local taxes and fees include all payments that are aimed at replenishing city or regional budgets.
Definition of a concept
Local taxes include mandatory payments that are aimed at replenishing the municipal budget. Sizes and rates are determined by regional authorities. But since local taxes are an integral part of state taxes, the calculations should be made on the basis of legal norms.
When establishing a specific tax and its rate, the object, base, period and calculation formula is determined strictly by federal law. The powers of local authorities include determining the final value of the rate, the due date and the procedure for its implementation, preferential categories of persons who are exempt from municipal taxes and fees.
What taxes apply to local
Local taxes in the Russian Federation include the following types of payments:
- land (charged to the owners of land);
- property tax for individuals;
- a fee levied on persons engaged in certain types of entrepreneurial activity;
- tourist (paid by people who are in the region through intermediaries, which include hotel organizations, people and businesses that rent housing);
- fee for the organization of paid parking lots.
It is worth noting that the establishment of local taxes is within the competence of municipal authorities, which determine the need for funds in a region or city. Nevertheless, all calculations must be carried out in strict accordance with federal tax laws.
Personal property tax
In relation to this type of obligatory payments, two categories of property are distinguished:
- real estate: houses and apartments, summer cottages, garages and other structures;
- movable: all vehicles except cars and motorcycles.
Payers of this type of tax are persons who own the indicated objects. Moreover, it can be both residents of the Russian Federation and foreign citizens. The base for taxation is the estimated inventory value, which is multiplied by the corresponding coefficient determined by the municipal authorities and tax authorities.
A number of categories of persons are exempt from property tax. These include:
- people assigned to state awards of various degrees;
- participants of the Great Patriotic War and other military operations;
- persons participating in measures to eliminate the consequences of the Chernobyl accident;
- active servicemen, as well as those who have left with experience over 20 years;
- families of servicemen who died in the line of duty as a result of illness or accident;
- pensioners;
- cultural and art workers, as well as persons whose property is used as museums, galleries, amateur theaters, and so on;
- with owners of buildings with an area of less than 50 square meters. m located on the territory of horticultural farms or cooperatives.
The tax payment period is 365 days. Moreover, if the owner has changed during the calendar year, the obligations for this type of payment are assigned to the previous owner.
Land tax
Land tax refers to local taxes, which are designed to replenish municipal budgets. It is worth noting that the size of this payment is in no way connected with the results of the owner’s commercial activities. This indicator is determined solely on the basis of the value of the land: its chemical composition, fertility, as well as location and other criteria.
Obligations to pay land tax are assigned to both legal entities and individuals. Moreover, it can be both direct owners or landowners, and tenants who exploit this resource on the basis of relevant rights. Speaking about the latter, it is worth noting that they are not responsible for paying tax payments, but it lies with the landlord.
Certain land plots, in accordance with the law, cannot be considered taxable. These include:
- lands withdrawn from economic turnover (mainly those that were transferred to the military departments);
- lands on which cultural and historical sites are located;
- plots near customs zones;
- forestry;
- land near water bodies.
Preferential categories include:
- public services and enterprises;
- religious organizations;
- public associations of disabled people;
- art and other cultural organizations;
- individuals as well as communities representing ethnic groups in the Northern and Far Eastern regions;
- organizations working in special economic zones.
Property tax
Among other payments, local taxes include fees from property owners. It is worth noting that if the owners of residential properties are several persons, then they pay the amount corresponding to the share belonging to them. The following objects are not subject to taxation:
- immovable residential buildings that have not been privatized (owned by the state);
- houses in the territories of alienation;
- real estate that is operated by family-type orphanages (bought or specially built for these purposes);
- small country buildings;
- real estate owned by large families (if there are more than one objects, then they are taxed);
- dormitories of educational institutions, as well as manufacturing and non-manufacturing enterprises.
Parking fee
Local taxes include fees from owners of paid parking lots. It is worth noting that this type of payment is calculated on the basis of which territory is reserved for these commercial purposes. The coefficient established by law is multiplied by the number of square meters occupied by parking (percentage of the minimum wage set in the reporting year). Payments for this type of tax are made quarterly.
Business Tax
Local taxes also include fees on certain types of entrepreneurial activities, namely:
- sale of all kinds of goods;
- the provision of domestic services (listed on the CMU);
- conducting exchange operations with currency values;
- entertainment business (attractions, concert programs, film distribution, etc.).
The establishment of local taxes is the responsibility of regional or city authorities. They determine the percentage that will be charged to entrepreneurs in the reporting period (it may depend on the economic condition and needs of a particular area). In addition, the amount of payment may also increase depending on the type of activity, as well as the location of the enterprise. A commercial organization is also required to acquire a trade patent.
Tourist tax
Local taxes and fees include tourism, the decision on the collection of which is taken by the authorities of the corresponding region, city or other locality.It is worth noting that this payment falls on the shoulders of persons who arrive at a particular point for tourist or any other purpose. Certain categories of citizens are exempt from this tax, namely:
- persons arriving on a business trip;
- disabled people, as well as their accompanying;
- veterans of World War II;
- persons who have arrived for treatment at a sanatorium with an appropriate license;
- children under the age of majority at the time of arrival.
The amount of tax is included in the cost of living, and therefore it can be said that the intermediaries for its payment are:
- hotels, hostels, campsites and other institutions hosting and accommodating guests;
- agencies, as well as owners of apartments, renting housing for legal purposes.
Conclusion
Local taxes include the following taxes: to land, on property of individuals, as well as fees from owners of real estate, paid parking and tourist. These payments are aimed at replenishing municipal budgets.
It is worth noting that the facilities, the taxation procedure, as well as the list of preferential categories are determined by local authorities on the basis of federal legislation.
