MOSCOW REGION SETS THE SALES PRICE FOR LAND OWNED BY THE REGION OR IN UNDELIMITED STATE OWNERSHIP AFTER 1 JULY 2012

The Moscow Region Government has adopted Resolution No. 639/16 of 2 May 2012, establishing the sales price for land plots owned by the Moscow Region or in undelimited state ownership to be sold to individuals and legal entities owning buildings, structures and facilities accommodated by these land plots (clause 1.1, article 36 of the Russian Land Code).

The general rule is that the sales price is 15% of the land plot cadastral value, i.e., the price effective before 1 July 2012 continues to apply (if the maximum possible land tax rate is taken, 1.5% of the cadastral value). Exceptions from this rule are also established:

1)  3% of the land plot cadastral value for:

• agricultural land,
• populated area land with permitted use for agricultural production (use),
• irrespective of the land category, land with permitted use for residential construction (including individual housing construction), for small-scale cultivation and construction, for gardening or garage construction (including individual garage construction) and household land,

2)  2.5% of the land plot cadastral value in the instances stipulated by clause 2(2), article 3 of the Federal Law “On Enactment of the Land Code of the Russian Federation” (certain instances when the right of permanent (indefinite) use was converted to lease rights).

It should be noted that the sales price for land in federal and municipal ownership will be determined by a federal executive body authorized to do so by the Government and the local government authorities, respectively.