The role of cadastral value in balancing local budgets

DOI

10.2991/cssdre-19.2019.102How to use a DOI?

Keywords

local budget, budget balance, budget deficit, cadastral value, local taxes

Abstract

Modern tax federalism implies that federal budget relies on the major taxes. This results in the lack of regional and local taxes and dependency of the local authorities. Local taxes mainly include personal income tax, corporate property tax, personal property tax and land tax. Thus, the taxable base is related to the cadastral value of real estate. In the article the authors study the dependence of the balance of local budgets on the cadastral valuation. Regional and local authorities apply the mechanical approach to the development of their taxable base, which leads to overestimation of cadastral value in most regions. The authors studied this problem and analyzed the situation in Tambov and Volgograd regions (that belong to different federal districts) and in their regional centers. The study showed that an overestimated cadastral value leads to an increase in the number of claims challenging the cadastral value and to a reduction in the taxable base. As a result, local budgets suffer and it gets difficult to balance a budget.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Vladislav Sutyagin
AU  - Yana Radyukova
AU  - Svetlana Zenchenko
AU  - Anna Sinitsyna
PY  - 2019/06
DA  - 2019/06
TI  - The role of cadastral value in balancing  local budgets
BT  - Proceedings of the Volgograd State University International Scientific Conference "Competitive, Sustainable and Safe Development of the Regional Economy" (CSSDRE 2019)
PB  - Atlantis Press
SP  - 529
EP  - 534
SN  - 2352-5428
UR  - https://doi.org/10.2991/cssdre-19.2019.102
DO  - 10.2991/cssdre-19.2019.102
ID  - Sutyagin2019/06
ER  -