Land tax is a type of government payment that is obligatory paid by individuals and various organizations that own a registered land plot. Taxpayers are not recognized as persons whose land plot is for free use or transferred for the duration of the lease.
There are tax breaks for veterans, disabled people and pensioners, which are used by more than 20 million people annually. These benefits make life much easier, however, unfortunately, many pensioners do not know that they are entitled to benefits and continue to pay the full cost of the state payment. The rest of this article is all about benefits for the disabled, the elderly and veterans, as well as information on how to apply for them, calculate the tax and reduce it.
Legislation
Who establishes tax benefits?
The conditions for providing benefits and the full list of citizens entitled to receive them are stated directly in the Tax Code of the Russian Federation, Chapter 32 . Taxation benefits are established by the current code of the Russian Federation and normative representative acts of local government bodies.
The Tax Code provides benefits for land tax
The Tax Code provides for the deduction of a mandatory payment for each plot of land that is in common shared ownership and involves the provision of benefits for a limited number of persons prescribed in the Tax Code of the Russian Federation.
Land plots are not recognized as objects of taxation:
- land property that was seized in connection with a decision of the legislation of the Russian Federation;
- which contain valuable monuments of the country's cultural heritage that are on the World Heritage List, as well as large nature reserves of the Russian Federation, historical museums and reserves, and the archaeological heritage of the Russian Federation;
- which have become invalid;
- which are part of the forest fund;
- where there are water bodies that belong to the Russian Federation and are included in the country’s water fund;
- which are included in the common property of apartment buildings.
What is the land tax rate
Payment for land is calculated from the cadastral value of the land. The land tax rate can be 0.3 and 1.5% of the cadastral* value of the land plot - this depends on certain conditions of land use.
Tax 0.3% applies to the following lands:
- used in agricultural applications;
- purchased for the construction of residential premises, housing stock;
- purchased for subsistence farming;
- limited in free use by the Russian Federation state.
In other cases, the land tax is 1.5% of the cadastral* value of the plot.
*price of a land plot established as a result of state assessment.
Land tax
The procedure for calculating land tax (LT) for individuals and enterprises is regulated by Ch. 31 Tax Code of the Russian Federation. ZN refers to local fees. This means that the payment is credited to the municipal budget.
Local governments can determine their own rates. The Tax Code of the Russian Federation regulates only the maximum permissible percentage of collection:
- 0.3% – for plots for individual housing construction, gardening, gardening, subsidiary farming, agricultural land, territories intended for security, defense and customs needs;
- 1.5% – for other categories of land.
The municipality has the right to provide additional deductions for the payment of land tax.
Who is eligible for land tax benefits in 2021?
Only a certain group of the population enjoys land tax benefits, namely:
- elderly people (pensioners);
- disabled people who have 2nd and 3rd disability groups;
- individuals who have the right to receive social support from the state due to a difficult life situation;
- families who have lost their breadwinner who served in the military defense of the Russian Federation;
- military personnel who were removed from military defense service due to health conditions or at the end of their service period;
- land tax benefits can be provided to large families and low-income families;
- single-parent families (in the absence of one of the parents or guardians).
The listed population group also has a tax break for a summer cottage.
Who is exempt from paying land tax
Residents of the northern regions of Russia and the Far East do not pay mandatory state land contributions. As well as the category of citizens exempt from paying land tax:
- heroes of the Soviet Union and the Russian Federation;
- veterans of the Great Patriotic War and other combat veterans;
- disabled children and people with disabilities since childhood;
- disabled people of 1st and 2nd disability groups;
- people who are registered with the Russian healthcare system due to radiation burns received during the disaster at the Chernobyl nuclear power plant (Chernobyl victims);
- people who were directly involved in the development, testing, and exercises of any nuclear installations and as a result suffered health complications (participants in nuclear tests).
Many pensioners often wonder whether land up to 6 acres in size is taxed. According to federal law, starting from 2021, pensioners are exempt from paying state payments for land plots of less than 6 acres of land.
Tax benefits for pensioners
Land tax benefits are available to old-age pensioners: older people in Russia have the right to receive tax benefits on the land issue. More than 15 million pensioners use the proposed “discounts” every year, because such tax discounts for pensioners on land make life much easier and allow them to save money.
If the land plot is less than 6 acres, then pensioners do not need to pay a mandatory payment for it.
If the plot size is larger, then the cost of this payment is calculated from the remaining area of land.
The pensioner also needs to pay land tax if he has more than several properties at his disposal. In this case, he must select one object from each category to which the benefit will apply (apartments, houses, garages, and so on).
Are military pensioners exempt from making mandatory payments on land property?
Military pensioners also pay a mandatory state contribution for land, taking into account the fact that they can receive benefits in the form of partial or complete tax exemption.
For veterans and disabled combatants, as well as for several other groups of the population, a reduction in the tax base of 10 thousand rubles is provided.
Labor veterans are not exempt from paying land taxes. Only a few categories of people have the right not to pay land tax, which does not include labor veterans:
- heroes of the USSR and the Russian Federation;
- disabled people of the first and second groups;
- disabled children;
- war veterans;
- people affected by the Chernobyl accident.
Federal and local benefits
As noted earlier, land tax is local.
The type of benefits and complete tax exemption are regulated by regional authorities. Federal legislation only establishes the categories of citizens who are entitled to easier conditions. Disabled persons are persons who are entitled to benefits under the legislation of the Russian Federation. Local authorities only specify and implement benefits through regulations.
Disabled people
This class of citizens is not completely exempt from taxes.
Disabled people of the 1st group are necessarily given a tax benefit in the form of a deduction of 6 acres. But decisions regarding disabled people of the 2nd group are made directly by local governments. The tax benefit is relevant only for one plot of land. If a citizen has acquired several territories, then payments are collected as usual.
Benefits do not lose their relevance as long as there are reasons for this. That is, if a person is removed from disability, the benefit immediately ceases to apply. The accepted terms for the 1st group are 2 years, and for the second – 1 year. After the certificate loses its validity, the citizen must undergo a re-examination.
Veterans of Labor
Currently there are two titles in the Russian Federation:
- Labor veteran of the Russian Federation.
- Labor veteran of a particular republic or region.
The legislation on benefits is relevant only for the first option - Labor Veterans of the Russian Federation.
Local authorities have every right to establish benefits for “their” labor veterans, which should be based on regulated federal standards and not go beyond them.
Benefits for labor veterans are completely similar to those with disabilities. To calculate the tax, the cadastral value of the plot is reduced by 600 square meters. In this case, the reduction applies only to one specific territory.
The procedure for obtaining benefits is standard. It is necessary to submit an application to the Tax Inspectorate of the Russian Federation.
Large families
According to Federal law, families with several children do not have the right to a reduction in payments.
In this case, the issue of exempting large families from taxation is decided by local governments. In Russia, families with at least three minor children are considered to have large families. However, regional authorities can independently determine which families are considered large.
Before you start applying for benefits, you need to find out whether your family has the status of a large family. It is also necessary to clarify whether benefits have been established for you.
The rest of the procedure is standard - an application is submitted in the prescribed form, accompanied by documents proving the existence of a large family status.
Read about what private housing construction is and how it differs from private household plots, SNT, DNP in the following article[.
How to apply for tax benefits
To apply for the benefits specified in the article, you must:
- contact the tax office yourself;
- send an application by mail;
- fill out an application through your personal account on the website of the Federal Tax Service;
- register an application through the MFC (multifunctional center).
If registration takes place in person, through a visit to the tax office, then you need to take documents confirming your rights to benefits. If online, then send documents electronically.
The application form for land tax benefits can be found here:
- take it from the tax office itself;
- download from the tax service website;
- download from the link below on our website.
Applications
The application will need to indicate general provisions :
- FULL NAME.;
- passport series and number;
- Date and place of birth;
- phone number;
- date of issue of passport and so on.
Also indicate at the bottom of the application who you are (the taxpayer or his representative), full name, transcript and signature. Then the tax officer signs and sends the application for processing.
filling out an application
Payment procedure for organizations
Commercial enterprises that own land territories on the right of ownership or the right of perpetual use are required to pay land tax to the state.
Plots transferred for disposal under gratuitous use or lease agreements are not subject to taxation.
Tax calculation for legal entities is carried out using the following formula:
N = Co × St
- N – amount of tax to be paid;
- Ko – cadastral assessment of the site;
- St – rate.
Payment is made quarterly, in the form of advance payments. At the end of the tax period, enterprises submit a declaration and pay the remaining amount of tax, minus advance payments.
Benefits under the Tax Code of the Russian Federation
In accordance with Art. 395 of the Tax Code of the Russian Federation, a deduction of 100% for payment of ZN is available to:
- institutions of the penal system of the Ministry of Justice of the Russian Federation;
- religious associations;
- public organizations of disabled people;
- institutions of folk artistic crafts;
- resident companies of a special economic zone (5 years from the date of ownership);
- management companies of lands located on the territory of Skolkovo;
- funds of innovative scientific and technical centers;
- indigenous communities;
- organizations - participants in the free economic zone (3 years from the date of registration of ownership).
The deduction is provided for territories intended for the direct performance of the functions of the listed organizations, as well as for lands occupied by public state highways.
Local benefits
Municipal authorities have the right to provide benefits for organizations to pay tax on the basis of adopted regulations. You can obtain information about the amount of deduction when calculating land tax on the website www.nalog.ru, in the “reference information” section.
To receive information you must indicate:
- type of tax;
- reporting year;
- region;
- locality.
Then click the search button. The screen will display the current regulations in the specified locality, which determine the procedure for calculating and paying ZN.
For example, by decision of the Tyumen City Duma No. 641 dated October 26, 2017, it was determined that organizations using land territories for the construction and operation of sports facilities are completely exempt from paying ZN. And for enterprises producing rolled steel with a design capacity of at least 545,500 tons per year, a deduction of 50% is provided.
How to apply
To reduce the size of the ZN or not pay it at all to the legal entity. the person must contact the Federal Tax Service with an application indicating the legal act giving the right to the benefit. The application form was approved by order of the Federal Tax Service of Russia dated July 25, 2019 No. ММВ-7-21/ [email protected]
The statement states:
- information about the taxpayer-organization;
- cadastral number of the plot;
- the period for granting the benefit;
- tax benefit code;
- information about the legal act establishing the preference.
At the end of the sheet there is a date and signature of the representative of the organization. The application must be accompanied by documents confirming the right to a tax reduction. A specific list of documents is regulated by municipal authorities and is prescribed in the legal act that gives the right to the benefit.
How to calculate land tax
To calculate the land tax, you need to multiply everything:
- cadastral value;
- your share;
- tax rate;
- ownership coefficient.
The result should be a number that corresponds to the tax levy on your plot of land.
Land plot = cadastral price of a land plot * share of a land plot * tax rate * land ownership coefficient.
The tax rate can be found on the website of the Federal Tax Service. Automatic calculation of the tax amount can also be done on the Federal Tax Service website.
Financial basis for calculating deductions and rates
The basis for calculating the amount of the fee is the cadastral price of each land plot that was recognized as an object of taxation. You can find out this price directly from the set of necessary information on a national scale - the cadastre. If your land territory is not registered there, then it is necessary to register it with the relevant services.
The determination of the cadastral value is made in accordance with the land legislation of our country. Price information can also be obtained by requesting a local office of the city territorial office of the Federal Service for State Registration of Cadastre and Cartography.
The request must be made in writing, through an application addressed to the head of the organization
The determination of the financial basis for calculating deductions in each individual case is carried out by the tax authorities, according to the information in their possession. It, in turn, comes from tax payers and cadastral registration authorities. Regarding land plots that are partially owned by several owners, the basis for calculating the amount of the fee is determined in proportion to the land area available to each of the plot holders. If the ownership is of a general joint nature, then the calculation is carried out equally for everyone.
As for the tariff rates, it is understood that since this deduction is local in nature, their size is set by the local authorities of the subject, be it a region or a city of federal significance.
In this case, the following values are not allowed to be exceeded.
Table 1. Land tax rates
| Bet size | Which areas does it apply to? |
| 0,3% | For plots of land that:
|
| 1,5% | For plots of land not included in the categories listed above. It is possible to change the rate depending on the category to which the land belongs, as well as on its location relative to the residential areas of the region or locality. |
How to reduce land tax for an individual
Reducing land taxes can be quite difficult, since the tax depends on the cadastral value of the land and experts rarely make mistakes in the assessment characteristics of a land plot. However, this can be done in several ways:
- if you go to court and try to appeal the assessment of the land plot. In this case, the correctness of the calculations of the cadastral value of the land will be disputed, in which an examination will necessarily be carried out and the land will be assessed by experts in the event of an automatic error, it will be brought in accordance with the calculation standards;
- A reduction in land tax is also possible when renting out a plot. In this case, the owner may not pay the full cost of the tax, since it will be reduced;
- You can reduce the payment using benefits for certain groups of the population (listed above).
It is worth keeping in mind that going to court does not guarantee a positive outcome of the case and it often happens that, on the contrary, the cadastral value is added to the land plot after the trial, due to the fact that the expert gave an incorrect assessment.
Categories of beneficiaries for whom relief applies
These include the following categories of citizens:
- War veterans, when assessing the value of a land plot, 10,001 is subtracted from its value, and a tax is charged on the remaining value.
- Land owners are pensioners. There are no benefits provided at the federal level, and local governments can independently assign them.
- There are no tax benefits for large families at the state level. At the local level, these benefits are rarely used. To find out about the availability of such a benefit, you need to submit a request to the tax service.
- For military personnel of retirement age. This benefit is not provided either at the state level or in local governments. But in some areas it may operate at the local level.
- For labor veterans, such a benefit under ZN is not established. Available only in some areas, you need to find out about it in your local municipalities.
- Citizens who have 1 or 2 disability groups enjoy the following privileges. The amount of 10,001 rubles can be deducted from the cadastral value of a land plot, and tax is charged on the remaining value in the general manner.
How to pay land tax
With a tax notice, you can go to any nearest bank or bank terminal and pay the state land tax. But you can also pay:
- through a special service on the Internet;
- on the tax service website;
- via online banking.
Recently, you can also pay taxes on the government services website (where you need to register for the first time or pay through your existing personal account).
Tax exemption
Tax obligations are growing year by year. This is also explained by the increased needs of the state, economic feasibility and increased income of the population. Land tax previously did not represent a serious payment; it was more of a formality than an actual burden. However, since January 1, 2018, everything has changed; real estate tax, of which land fees are a type, has increased significantly. State bodies began to calculate contributions based on cadastral value, which in most cases is almost identical to the market value.
To mitigate the sharp tax increase, a system of gradual increase in the coefficient was developed, which, however, does not cancel the obligation to pay contributions.
Meanwhile, regulatory documents establish a number of benefits that allow some payers to be completely exempt from taxes on existing land plots, and for others to significantly reduce the established figures.
Exemption from land tax can be for various reasons. This is an economically sound measure that makes it possible to provide protection to those categories of individuals and organizations that are simply unable to bear the tax burden, but have a constitutional right to own and use land.
Federal tax deductions
Based on Part 5 of Art. 391 Tax Code, certain categories of persons, regardless of region, reduce the tax base by the price of 600 square meters of land.
According to Part 1 of Art. 390 Tax Code, the base is determined based on the cadastral price of the plot. Accordingly, to calculate the amount of deduction it is necessary:
- divide the full cadastral value by the total area of the plot, thus calculating the cost of 1 square meter;
- then multiply the price per 1 sq. m by 600, thus obtaining a price of 600 square meters;
- subtract the price of 600 sq. m. from the full cadastral value. m., thus receiving the amount of tax to be paid.
The following individuals may apply for this opportunity to reduce the tax base:
- Heroes of the Russian Federation, as well as the USSR;
- full holders of the honorary Order of Glory;
- disabled people belonging to the 1st or 2nd group;
- disabled people who have been disabled since childhood, or disabled children;
- WWII veterans;
- citizens who suffered radiation sickness or took part in work to minimize and eliminate the consequences of the disaster that occurred at the Chernobyl nuclear power plant;
- citizens affected by radiation as a result of the accident at the Mayak association;
- persons who tested nuclear weapons as part of special risk units;
- pensioners;
- persons who are already 60 years old (men) and 55 years old (women), who are assigned monthly maintenance for life.
The deduction is provided only for the 1st plot of land (if there are several of them). It is chosen by the taxpayer himself, simply by submitting a notification to the tax office in the form approved by Order of the Federal Tax Service No. ММВ-7-21/ dated March 26, 2018. The notification must be submitted before November 1 of the current tax period. If this is not done, the tax authorities themselves will apply the deduction to the land plot that has the largest tax base.
Results
Land tax payers are land owners: individuals and legal entities. Tax legislation establishes a list of legal entities and individuals exempt from paying this tax.
Read about the nuances of calculating and paying land tax in our “Land Tax” section.
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Who sets the benefits?
Partial or complete exemption from land tax is a benefit that is established at the legislative level. Since land contributions are made to regional budgets and form them, they are regulated at two levels at once:
- Federal.
- Regional.
At the federal level, taxation is regulated by the Tax Code. The points set out in it are the legislative basis and are subject to mandatory execution. Local authorities can introduce their own rules and regulations by issuing regional regulations, but they must not contradict or conflict with federal laws.
Regional authorities can and should supplement the lists of beneficiaries to the lists already established at the federal level. It is recommended to include certain categories in the preferential lists, focusing on the economic situation in the region. Some areas have more benefits, some have fewer.
List of federal benefits
You can view the list of benefits provided at the state level in Art. 395 Tax Code of Russia.
It states that only 1 category of individuals is recognized as federal benefit recipients - these are the small indigenous peoples of the North, the Far East and Siberia. These persons do not have to pay tax only in relation to those lands that they use to preserve their traditional way of life, to conduct economic and fishing work. For other plots, these persons pay tax on a general basis.
There are many more benefit organizations that do not need to pay land tax at all:
| Type of organization or enterprise | Which areas are subject to tax exemption? |
| FSIN and its regional divisions | Those that are used directly to perform the functions assigned to the Federal Penitentiary Service |
| Any organizations | Those occupied by public roads |
| Religious institutions | Those on which buildings and structures are located that have a religious and charitable purpose |
| All-Russian institutions for people with disabilities with a membership of people with disabilities more than 80% of the total number of members | Those used for the proper conduct of statutory activities |
| People's art organizations trades | Those that are used for the production and sale of folk art products. trades |
| SEZ residents | Those located on the territory of the SEZ |
| Management companies vested with the corresponding status under 244-FZ of September 28, 2010 | Those located in the Skolkovo center and used to meet its needs |
