ACADEMIC RESEARCH IN MODERN SCIENCE
International scientific-online conference
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VALUATION OF REAL ESTATE
Botirkhoja Aziza Fakhmuddin kizi
Tashkent State University of Economics
Assistant Teacher, Department of Valuation and Investments
https://doi.org/10.5281/zenodo.14868630
Abstract.
The article analyzes the nature of real estate valuation and
formulates conclusions and proposals based on the research.
Keywords
: tax analysis, property tax, real estate, assessment, value.
In our current research, we would like to focus on the property tax levied
on legal entities, which is of particular importance. In the tax system of the
Republic of Uzbekistan, property tax levied on legal entities is included in the
structure of direct taxes and, in essence, this tax is a tax imposed on resources in
the form of fixed assets. Clause 9 of the Decree of the President of the Republic of
Uzbekistan No. 6121 “On Further Improvement of Resource Taxes and Property
Taxation” dated December 3, 2020 states that “The Cadastre Agency under the
State Tax Committee shall, by January 1, 2022, determine the cadastral value of
real estate objects based on their market value, improve the information system
to create a complete and reliable database of real estate objects belonging to
each owner (user), and develop a methodology for conducting a qualitative
assessment of real estate objects based on their market value” [1].
Given the two branches of the state budget, namely the state and local
budgets, each of them serves to replenish the budget. When talking about local
budgets, it should be noted that all European countries adhere to the principles
of international democracy, which are reflected in the European Party of Local
Self-Government. One of the principles of local self-government is the federal
principle of the budget. This means that some functions of local authorities
should be carried out at the expense of their own sources of income. The most
important and widespread of them is the property tax.
Indicators of the tax on the property of real estate legal entities in our
country were analyzed and proposals and recommendations were developed in
the context of banning foreign experience. Proposals and recommendations are
given for determining the cadastral value of real estate based on foreign
experience in taxation of real estate objects, based on their market value. The
methods of induction, deduction, statistical observation, statistical and
comparative analysis were used in the research.
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According to the Tax Code of our country, "real estate is considered an
object of taxation for the purpose of taxing the property of legal entities. Real
estate includes the following:
1) buildings and structures that are subject to registration in the bodies
responsible for state registration of rights to real estate;
2) objects under construction. Objects under construction include objects
that are not completed within the regulatory period established in the design
and estimate documents for the construction object, or, if the regulatory period
for construction is not established, within twenty-four months from the month
of receipt of a permit from the authorized div for the construction of this
object;
3) railways, main pipelines, communication and power transmission lines,
as well as structures that are an integral technological part of these objects;
4) residential real estate objects, real estate objects listed on the balance
sheets of construction organizations or builders of buildings for subsequent sale,
six months after commissioning [2].
Problems of property policy in the economy and public administration
related to tax rates. They depend on the material of the structure, the size and
purpose of the object (residential buildings, industrial, economic facilities). The
determination of tax rates directly depends on legislation and economic
practice. In this case, two forms are used - a fixed rate and a variable rate [3].
When using fixed rates, the central government determines the percentage of
the taxable value, which allows for effective management of the revenue part of
the local budget.
The variable tax rate is set by local authorities, as a rule, annually,
depending on the forecasted budget expenditures and the availability of the tax
base. At the same time, local authorities are given the appropriate powers to
determine the size of the rates or set the rate based on the minimum or
maximum limits established by law at the national and regional levels.
- in almost all countries there is a property tax (real estate tax), which is
considered a local tax and is one of the most important sources of funding for
local budgets;
- in each country there are special conditions for collecting real estate tax,
which depend on the tax base, rates, status of the payer (legal entity or
individual) and the system of incentives for payers;
- when determining the tax base, the market value, capital, use, inventory
value, and rent of taxable objects are used. Public valuation is used using
ACADEMIC RESEARCH IN MODERN SCIENCE
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standard procedures to determine the value of the object. The tax base is
determined by various bodies, including fiscal authorities, the state register of
real estate, municipalities, and commercial organizations.
- we consider it appropriate to call the concept of property tax in our
country in the future "real estate" tax;
- Article 411 of the Tax Code, paragraph 3 "Taxable objects" includes the
following tax objects: railways, main pipelines, communication and power lines,
as well as structures that are an integral technological part of these objects. Our
proposal is to include in this article outdoor advertising objects, i.e. structures of
technical equipment used, in accordance with the place of their installation,
which should be transferred from the cadastral register and recognized as real
estate and recognized as a taxable object.
- Improving the system of taxation of land plots of individuals and legal
entities not intended for agricultural purposes based on their market value;
- the tax base is given in paragraph 3 of paragraph 1 of Article 412 of the
Tax Code, where it is stated that the tax base is the revalued (market) value of a
fully depreciated building, determined at least once every three years. The
amount paid to the appraiser when determining the revalued (market) value of
a fully depreciated building, determined at least once every three years, is a tax
deduction from property tax [3].
It can be seen that today, the introduction of the practice of calculating property
and land taxes based on the cadastral value of real estate objects, which is close
to the market value, can have an effect on the increase of tax revenues in the
budget of our country and, logically, in the process of productive use of property
and land and income from it. Thus, it is necessary to develop and improve the
valuation of real estate based on the experience of developed foreign countries.
References:
1.
On further improvement of resource taxes and property taxes // Decree of
the President of the Republic of Uzbekistan, No. PF-6121 dated
03.12.2020https://lex.uz/docs/5138323
2.
Tax Code of the Republic of Uzbekistan (new
edition)
//https://lex.uz/docs/4674902
3.
Abdibaeva T., & Nazarov A.K. (2021). Specific characteristics of real estate
taxation in foreign countries. Economics and society, (6-2 (85)), 734-744.
