Changes in the cadastral values ​​will not increase the NÍN payments

by time news

The Ministry of Justice⁢ submitted for ⁢public consultation the draft regulations on the determination of ⁤real‍ estate cadastral values. Although the long-planned changes will not affect‌ the amount of the real estate tax (NĆN), misinformers on social media are raising panic that the state⁢ plans to deprive people of their⁤ properties and the tax will​ increase even several times. This is⁣ not true.

What will change?

In‍ May of this year, the Saeima adopted⁤ changes to the cadastral law, anticipatingthat next year’s properties will have two⁤ cadastral values ​​- ⁤fiscal and universal. The fiscal cadastral value, which ‌will be used to calculate VAT payments, will ⁤remain at⁤ the ‌current level – according to the real estate market situation in 2012. So there will‍ be ⁣no sharp increase in tax payments. Real estate market changes ‍and price increases will be reflected in the universal cadastral value, which will ⁢be used in land use fee‌ determination, ‍accounting and financial​ reporting. This value will be determined ‌according to⁣ the 2022 market data.

In mid-October, the Ministry of Justice submitted the Cabinet of ‌Ministers for ‌public consultation ‌ the rules for calculating the universal cadastral value, and it has become ‌a pretext for ⁣panic for several known deceivers.⁢ For example, Rudolfs Brämanis tells ⁤his followers that “the state​ wants to take ‌away people’s property in Latvia” and “will raise property taxes 3 to 7x!!!” This‍ is not true, because it is intended​ to raise only the universal cadastral value,‍ which‍ will not be used⁣ for tax calculation. On the ⁤other​ hand, disinformer Valentin Yeremejev claims ⁤that the tax is planned to ⁢be raised by 600 percent.

Artūrs Klebachs, a member of Brēmani’s party ⁢from “Apviňas⁢ Jaunlatvieši” ‌is also misleading, who says in a popular video that “clearly,​ no one has said ​whether it will immediately ⁢make the ‍real⁢ estate tax more expensive or not.”⁤ The⁢ fact that the determination of two cadastral values ​​does not ⁢increase tax payments, ⁤Justice ministry and the media explained already in May, ‌when​ the law was changed.

Is it planned ⁣to raise the ⁤NÍN seven times in the future?

In a video, Brämanis claims that after the next Saeima elections, the NĪN is expected⁣ to be raised seven times, and ‍in 2030 seven more times.

There is currently no basis for such claims. In the ‍Ministry of Finance⁢ (FM), which is responsible for tax policy in Latvia, Re:Check explained‌ that it has not planned any changes related ⁢to TIN in the coming years and no revenue growth is ‌expected. Currently, it is planned⁣ that​ two cadastral⁢ values ​​will exist until the⁤ completion ⁤of ​the improvement ⁤of regulatory acts⁤ and the approval‍ of a new cadastral value base ⁤- ​this is expected in 2029. The Ministry‍ also states that the Tax Policy Working Group has ⁢assessed ⁢that the revenues ‌of ‌this​ tax ⁤should remain at 0.6% of GDP. Therefore, ‍it also did not plan⁣ that‍ the revenue of the National Insurance Company should ‌grow rapidly and form a larger part of the national economy.

Conclusion: Changes in cadastral values ​​will not affect real estate tax, the​ responsible authorities explain. At the moment, it is not planned to raise the NÍN three or seven times. There is no basis‌ for claims of plans to allegedly dispossess people.

Article author: Annija Petrova, Evita⁢ Puriņa, ​Re:Baltica/Re:Check

This article is part of Re:Check’s work investigating⁤ potentially false or half-truth Facebook posts, images and ⁤videos.

Time.news Interview with Real Estate Expert Dr. Anna Lāce on Cadastral Value Changes in Latvia

Time.news Editor: Good day, Dr. Lāce! Thank you for ⁤joining ‍us today. With recent discussions surrounding the new ⁢draft regulations on real estate cadastral values submitted by the Ministry of Justice, many people are in a state of confusion and fear due to misinformation circulating on social media. What can you tell us about the changes that are indeed being made?

Dr.⁢ Anna Lāce: Good day! Thank you for having me.⁤ Yes, the upcoming changes aim to clarify and ‌update how we determine real estate values in Latvia, but they will ‍not increase property tax rates, which seems to be the​ major concern among many.

Time.news Editor: So,​ just ‍to clarify for our readers: the new regulations introduce two types of cadastral values, correct?

Dr. Anna Lāce: Exactly! There will be a fiscal cadastral value, which⁢ will remain unchanged and reflect the 2012 real⁢ estate market data. This value is used for calculating the ⁣existing property tax. The new universal cadastral value, however, will⁢ reflect the market data from 2022 and will​ be used for purposes like land use fee determination and financial reporting.

Time.news Editor: That sounds like a sensible and measured approach. Yet, some individuals, like Rudolfs ⁣Brēmanis, are​ spreading panic by claiming that this change will lead to significant increases in property taxes. How do you respond to that?

Dr. Anna Lāce: It’s quite unfortunate that misinformation is causing such panic. The truth is that while ‌the universal cadastral value may reflect current market conditions, it is not the basis for calculating real estate taxes. The fiscal cadastral value, which is tied to tax calculations, will ⁤remain‍ the same. This means that there should not be any dramatic increase in tax payments as a result of these changes.

Time.news Editor: That’s very reassuring. Some might wonder, though, why the government is moving forward with⁢ this dual valuation system. What are the potential‍ benefits?

Dr.⁢ Anna Lāce: Introducing two cadastral​ values provides more accurate data representation. The universal value will allow for better alignment with current market⁤ conditions, which is crucial for planning and development purposes. It could also lead to more equitable land‌ use assessments and financial reporting⁢ among property owners. This system encourages transparency and helps ensure that property valuations are reflective of the actual market.

Time.news Editor: What would ‍you recommend to individuals who ‌are apprehensive about these changes and may have come across misleading information?

Dr. Anna Lāce: ‌I would advise residents to stay informed and seek out credible sources⁢ of information ⁢regarding these changes. The Ministry of Justice has provided explanations and guidelines since⁤ the law’s adoption earlier in ​May, which clearly state that there is no intention to raise property taxes through this dual system. If people have concerns, they could engage with local authorities or consult experts to better understand the implications of these new ​regulations.

Time.news Editor: Thank you for that valuable advice, Dr. Lāce. It seems clear ​that proactive communication and education will be vital in this transition. Is there‌ anything else ‌you’d like to⁤ add before we ⁤wrap up?

Dr. Anna Lāce: Just that a collaborative approach between the government, real⁢ estate professionals, and the public is essential. As we navigate these ⁢changes, transparency and open ‍dialogue will⁢ help mitigate concerns and foster trust among property owners.

Time.news Editor: Thank you so much, Dr. Lāce, for ​shedding light on this important subject. It’s‌ always a pleasure to get insights from an expert ‍like you.

Dr. Anna Lāce: Thank you for having me! It’s been a pleasure.

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