Fiscal Implications of a Complete Conversion to Taxation of Property of Organizations in Russia on the Basis of Cadastral Value

Abstract

The study is focused on estimating the fiscal implications of conversion to taxation of corporate property on the basis of cadastral value. The relevance of the work is determined by the importance of forming a stable tax base for property tax in the context of the conversion to taxation based on the cadastral value of the corporate property tax. The purpose of the study is to estimate the implications of a complete conversion to the use of cadastral value as the only source of formation of the tax base for corporate property tax. The study aggregates information from the state dataset «Data on cadastral value of real estate properties by territorial affiliation» of Rosreestr (The Federal Service for State Registration, Cadastre and Cartography). The research procedure consists in the fact that, based on the processing of this information, the total cadastral value and the number of capital construction properties in the regions of the Russian Federation are characterized. At the same time, the hypothesis of the research is that a complete conversion to taxation of corporate property on the basis of cadastral value results in the growth of tax revenue from corporate property tax. The characteristics of the monetary and numerical parameters of such a potential tax base are given and the implications of a complete conversion to the taxation of corporate property on the basis of cadastral value are estimated. The resulting estimate is compared with actual revenues, and a conclusion is made about the positive effect of a full conversion to the use of cadastral value as the tax base for corporate property tax. The theoretical relevance consists in the fact that the possibility of the direct use of data of the state dataset for formation of information on the tax base on corporate property tax is critically analyzed. The practical relevance is determined by the calculation of the potential growth of corporate property tax revenues in connection with the full conversion to the calculation of the tax base only on the basis of cadastral value as per the Rosreestr dataset.