Proportional real estate tax application problems in Latvia | Samērīga nekustamā īpašuma nodokļa piemērošanas problēmas Latvijā

English. Writing topics actuality is based on the government proposed property tax increase of 2011 residential tax. Author of the article concludes that till now disproportionately spacious cadastral value range and its inadequacy towards resident income has restricted to establish a fair personal income and property tax proportionate to the objective of appropriate tax. Just now Latvia is experiencing huge increase in amounts of real estate tax debt and number of debtors. The planned tax increase will worsen the state of poor people, reduce household purchasing power and in no way stimulate the development of the Latvian economy in general. To ensure reasonable real estate tax application the author considers the following measures: (1) Real estate tax has to be connected with the person's income and present paying opportunities. Ability to pay has to be rated by residents real income in each region of country, as difference between resident income levels by region are relatively small. Furthermore, for many state and local government employed occupations wages are the same regardless from the region in which the workplace is located. (2) Socially acceptable real estate tax would have to be set down a specific minimum home size and value, which should be applied with a relatively small tax rate, while leaving the rest of home size with a proportionately increasing tax rate. Real estate tax must also be linked with the resident size in the particular home. (3) Immediate change of methodology on how cadastral values are evaluated in Latvia is required. Review manners in which the State Land Department is setting the property cadastral values. Cadastral valuation can’t be based solely on real estate market information on disposals, because they are affected by many confounding factors – unknown origin free cash investment, credit availability, speculative transactions, etc. (4) It is required to conceptually review the role of local government in real estate tax realisation – determination of real estate base (cadastral value), real estate rate accommodation (establishing differential rates or rate corridors in territory of one local government) and tax administration processes.

Latvian. Nesamērīgi plašais kadastrālo vērtību diapazons un tā neatbilstība iedzīvotāju ienākumiem līdz šim ir liegusi noteikt ar iedzīvotāju ienākumiem samērīgu un īpašuma nodokļa mērķiem atbilstošu nodokli. Nav atbalstāms valdības plānotais nekustamā īpašuma nodokļa palielinājums 2011.gadā mājoklim, situācijā, kad nekustamā īpašuma augstā kadastrālā vērtība nereti ir pilnīgi neatbilstoša vidējiem mājsaimniecības ienākumiem attiecīgajā pašvaldībā, kā arī kadastrālās vērtības noteikšanas objektivitāte ir apšaubāma, ņemot vērā nekustamā īpašuma burbuļa sekas un manipulācijas ar nekustamā īpašuma pārdošanas cenu tirgus darījumos. Turklāt, jāņem vērā, ka šāds nodokļa paaugstinājums var būt problemātisks mājsaimniecībām, kuras ir ņēmušas hipotekāro kredītu sava mājokļa iegādei, un plānojot savus nākotnes ienākumus, nav rēķinājušās ar šāda nodokļa ieviešanu.