Since 2004, when the process of assessing real estate for taxation purposes started, there were evaluated over 1.5 million possessions of the 5.5 million that are to be assessed. Head of the Assessment Service of the Land Relations and Cadastre Agency Olga Buzu said the homes, farmland and property with special purposes haven’t been yet assessed, but the process was stopped, IPN reports. 

“This year, the mass assessment of realty for taxation purposes hasn’t been carried out because no money was allocated from the budget of the Land Relations Agency. There were performed only works to assess 12,000 newly formed possessions such as apartments in new blocks and individuals houses that started to be used,” said the specialist.

Asked when the homes in rural areas and the farmland will be evaluated, Olga Buzu said it’s hard to say as the Ministry of Finance, which is working out the fiscal policy, considers that the costs associated with the assessment will be much higher than the tax levied based on the market value of these homes. Besides, many of the rural homes aren’t registered at the Cadastre Agency and should be thus registered before being evaluated.

“These works must be carried out as it’s not normal to use two systems for taxing realty – based on the market value and based on the sum value, which is about 10 times lower. This is inequitable in regard to tax payers,” stated Olga Buzu.

She considers that time has come for reassessment as the prices of apartments and homes in municipalities and towns and of other property increased a lot since 2005. The reassessment procedure hasn’t been adopted. The Land Relations and Cadastre Agency put forward a relevant draft decision, but it wasn’t endorsed by the Ministry of Economy and the Ministry of Finance.