Latvia, Legislation, Real Estate

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Riga Region local governments protest high cadastral values

Nina Kolyako, BC, Riga, 14.04.2011.Print version
Riga Region local governments believe that the cadastral value of land plots in their areas, decided by the State Land Service, is disproportionately high, therefore, residents have to pay a property tax that is too high, taking into account the current economic situation in Latvia.

Thirteen representatives from Riga Region local governments will meet in Jurmala tomorrow, April 15, to discuss ways to achieve fairer cadastral values, as Marupe County Council's representative Peteris Pikse told LETA.

 

Real estate tax on land is set by the State Land Service, based on the cadastral value of a given land plot. The tax is collected by local governments, and real estate tax revenue forms part of local governments' budget revenue. Pikse noted that the total amount of unpaid real estate tax in Marupe was at LVL 460,428 this past January.

 

Even though the local government is unable to collect the full amount of taxes, it has to make full payments into the municipal cohesion fund – this year, it is LVL 1.4 million. "We have an absurd situation here. Marupe County Council has to literally "strip naked" local residents so that it can give money to others. Many Marupe residents are unable to pay the real estate tax, neither can they sell their property because the cadastral value for the land plots beneath the property does not correspond to the actual economic situation," stressed Pikse.

 

Pikse explains that several thousand people moved to Marupe County during the "wealthy" years, but it would be wrong to believe that they have no financial problems. Most have taken out loans to build their homes, and the higher property tax is causing serious problems for many local residents. The local government, on the other hand, requires large amounts of money for infrastructure maintenance.

 

A number of other Riga Region local governments are in a similar situation.

 

At the beginning of this month, Marupe Region launched a signature drive to urge the State land Service and the Cabinet of Ministers to immediately revise the principles for calculating the cadastral value of land.






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