Funding for comprehensive cadastral works should be brought up to 3.7 billion rubles. Rosreestr sent that proposal to the Ministry of Economic Development, a representative of Rosreestr told Vedomosti. Of that sum, only 3.2 billion rubles would be needed from the federal budget. The rest would be co-financing by the regions.
Comprehensive cadastral works are a new tool for clarifying, on a mass scale, the records of land plots. When the works are finished, the Unified State Register of Real Estate (EGRN) should show a larger share of plots with clear boundaries that do not overlap, and with clarified boundaries of the structures standing on them (see the chart).
The Tyva Republic and Astrakhan and Belgorod regions have already started such works on a pilot basis (see the inset). They were allocated 50 million rubles from the budget in 2017, again on terms of co-financing. Depending on how well funded the region was, they put in 5-30% of the total cost of the works.
The other regions applied for subsidies for comprehensive cadastral works in 2018, for 2 billion rubles in total. The federal targeted programme "Development of a unified state system for registration of rights and cadastral registration of real estate (2014-2020)" so far provides only 100 million rubles for 2018, and 708 million rubles altogether.
For the regions, comprehensive cadastral works mean a higher investment appeal and land being brought into use. A Rosreestr representative says that Rosreestr therefore proposes not only a fivefold increase in spending on the works, but also a one-year extension of the programme, to 2021.
Even that money would cover the clarification of the location of only 1.1 million land plots in 21 regions. The EGRN, by contrast, holds records of 59.7 million land plots, of which only half (29.3 million) have boundaries fixed in accordance with the law (figures at the beginning of 2017). The Ministry of Economic Development and the Ministry of Finance did not tell Vedomosti whether they are ready to support wider funding.
It should not be assumed that fixing the boundaries of 100% of plots would double the tax base, warns Vladimir Redkin, senior director at Fitch Ratings. He believes that most plots whose taxpayers can pay already have clarified boundaries. Large companies, and the owners of large plots, have indeed for the most part already clarified their boundaries, agrees Sergei Pivovarchik, managing partner at Consul Group.
Missing boundaries, overlapping boundaries, and duplicate records after the databases of the technical inventory bureaus were merged with the cadastre, are common problems. They give rise to disputes, but they trouble individuals more often, and they can also cause tax disputes, Pivovarchik continues. Putting the records in order is an important task for conditions in the region as a whole, ahead of the investment climate. It will ease the load on the courts and improve the quality of life,
Sergei Pivovarchik is convinced.
Only work on a national scale will have an effect, not a selective clarification covering a million plots, notes Alexey Kaminsky, president of Expert Council, an association of self-regulatory organisations of valuers. The regions are not applying for the works very actively, apparently because they lack the money for co-financing. Before comprehensive cadastral works can start, Kaminsky adds, a land-survey project for the territory has to be prepared, and for now the municipalities must pay for that themselves. Works on every plot that has no boundaries would take more than 30 billion rubles, he reckons, because a normal price for a plot is 1,000 rubles.
The regions have only an indirect interest in the fixing and clarification of boundaries. Land tax goes into municipal budgets, not regional ones, and for the municipalities those receipts really do matter, Redkin notes. In Moscow and St Petersburg land tax can account for up to 30% of tax receipts, and in other municipalities for about 15%, he concludes.
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