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    Residents of Crimea to Be Exempt From Real Estate Taxes in 2015

    © RIA Novosti . Vladimir Fedorenko
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    Real estate taxes in Crimea will be collected starting from 2016, State Council's Chairman Vladimir Konstantinov said.

    SIMFEROPOL, November 4 (RIA Novosti) — Crimean authorities will not impose real estate taxes on individuals in 2015, State Council's Chairman Vladimir Konstantinov told RIA Novosti Tuesday.

    "In any case all those taxes will be collected starting from 2016. The tax basis has to be elaborated. Today we are a subsidized region, that is why we will definitely study this tax as it is essential for the local authorities," Konstantinov said.

    According to the law, adopted by the Russian State Duma on September 26, the tax on individual's real estate will be calculated on the basis of real estate's cadastral value. The law is expected to come into effect on January 1, 2015, although a five-year interim period is provided. During this period individuals could use real estate inventory assessment.

    Nevertheless, legal entities will have to pay real estate taxes. According to regional draft budget, Crimean authorities could receive about 2.2 billion rubles ($52.4 millions) in real estate taxes.

    Following the February coup in Ukraine, residents of Crimea and the city of Sevastopol refused to recognize the legitimacy of the new government and held a referendum in March which resulted in Crimea's reunification with Russia. Almost 97 percent of the population voted to break away from Ukraine and rejoin Russia. An interim period for Crimea's integration into Russian legal system was established till January 1, 2015.

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