THE CONCEPT OF REAL ESTATE TAXATION BASED ON THE AD VALOREM PRINCIPLE

The purpose of this paper is to evaluate the pros and cons of ad valorem real estate taxation in the context of the reform of the Polish real estate taxation system. A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This contrasts with a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible proper-ty. Real property (also called real estate or realty) means the combination of land and im-provements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real proper-ty is often taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial, and vacant real proper-ty. In Israel, for example, property tax rates are double for vacant apartments versus occu-pied apartments.

IMPROVING THE TAXATION OF IMMOVABLE PROPERTY OF PHYSICAL PERSONS IN THE RUSSIAN FEDERATION

The relevant issues of real estate taxation of individuals in Russia have been considered and proposals has been formulated aimed at developing a land plot taxation and residential real estate of individuals from the standpoint of optimal mix of fiscal and social-regulatory functions of taxes. The purpose of the presented paper is to substantiate the key directions of development of taxation of immovable property of individuals in the Russian Federation, taking into account foreign experience, as well as to develop practical proposals for their implementation. The methods of system approach, analysis and synthesis, as well as abstraction and generalization have been applied. Conclusions have been made about the need to implement the fundamental principles of taxation by establishing a fair assessment of the value of real estate and the uniformity of the distribution of the tax burden of individuals in the taxation of property owned by them.