Abstract
The article discusses cadastral land valuation in Russian resort towns, a procedure flawed by the fact that it does not take into account territorial prestige. Researchers in Russia and other countries state that it is essential to redistribute the land tax burden as the current situation creates tax injustice, which is reflected in the undervaluation of prestigious areas and the overvaluation of non-prestigious ones in resort towns. Competition for the most prestigious areas in such towns mainly stems from the opportunity for landowners to earn higher rental incomes during the high season. In view of this, the study aims to provide a method for cadastral land valuation in resort towns based on zoning by prestige. The application of the proposed method is demonstrated using the town of Anapa (a Russian resort town by the Black Sea) as a case study. The method is based on several research and analysis methods, including the following: the analytical method, which is used for a preliminary analysis of urban areas to identify the most attractive parts of resort towns; a modification of Saaty’s methodology combined with Pareto analysis, which is used to identify criteria for assessing how prestigious and important a part of the town is; cluster analysis, which is used for ranking areas in resort towns; correlation and regression analysis, which is used for land valuation modelling. The article describes the key criteria for ranking areas in resort towns by prestige, gives a definition of prestige applied to resort town districts, and proposes an equation for calculating the integral indicator of prestige and a method for assessing prestige. The validity of the prestige map that was created for the town of Anapa was proved by analyzing the average market prices for land plots located within the identified zones. The cadastral land valuation models describing land plots in Anapa that are intended for private housing construction can be correctly interpreted and are of acceptable quality.
Highlights
Calculating the cadastral value of land is one of the topical issues in the current market system of Russia, as its results have an impact on the amount of land value tax collected and, on sustainable local development
Among them are the following: land tax rates should be calculated as a percentage of market value; land valuation should be carried out by professionals who know the characteristics of the local market very well; land valuation methods that are used should be simple and readily verifiable by taxpayers; the characteristics of the property being evaluated should be logged in the Unified State Register of Real Estate; market prices for land plots should be declared and information on them should be freely available; land tax revenues should go to local governments and be used to improve public utilities and the quality of the environment [1]; the local community should be able to monitor how these funds are spent
Amendments to the Tax Code of the Russian Federation that came into force in 2015 defined the cadastral value as a tax base, which resulted in its growth
Summary
Calculating the cadastral value of land is one of the topical issues in the current market system of Russia, as its results have an impact on the amount of land value tax collected and, on sustainable local development. According to the theory of taxation and the experience of developed countries, the main goal of a fair land tax is to ensure sustainable local development rather than to contribute to state revenue. This goal can only be achieved if several minimum conditions are met. Fair land taxation has a direct effect on sustainable local development To achieve this effect, the right institutional environment needs to be created, which can be done, among other things, by improving the methodology of cadastral land valuation in Russia
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