Education at Lviv Polytechnic

Real estate monetary valuation as an integral component of the financial and legal relations in Ukraine

Students Name: Hera Mykhailo Ivanovych

Qualification Level: magister

Speciality: Land and Real Estate Valuation

Institute: Institute of Geodesy

Mode of Study: full

Academic Year: 2022-2023 н.р.

Language of Defence: ukrainian

Abstract: Hera M.I., Khavar Y.S. (head). Monetary valuation of real estate as an integral component of fiscal legal relations in Ukraine. Master’s thesis. – National University «Lviv Polytechnic», Lviv, 2022. Extended annotation. The tax system is the most important tool of state economic policy and regulation of market relations. Effective activity of authorities at the local level is impossible without a sufficient amount of financial resources, which are formed at the expense of the local budget’s own tax revenues. This means that the basis of the financial independence of local authorities is local taxes and fees. Property taxation, which is currently represented by land tax and real estate tax, is an important source of revenue for local budgets. Determining the value of real estate is one of the most extensive tasks of appraisal activity. Its results are taken into account during real estate taxation. Appraisal for tax purposes, although not a separate direction in appraisal activity, is tied to certain types of property transactions by its purpose. This applies mainly to the property of natural persons – residents, as well as non-residents of Ukraine, if they are participants in transactions with securities, movable or immovable property. The resulting regulatory and market value of the property is the basis for calculating state duty, the amount of taxes or fees, and other payments to the budgets of various levels. Normative legal, methodical and scientific publications in the field of monetary valuation of land and real estate for the purpose of taxation [1-6], as well as the work of specialists of the department of land cadaster of the National University «Lviv Polytechnic» [7-10] were analyzed. For the practical implementation of the theoretical provisions, we have provided a normative monetary assessment of the lands of the village. Pushkino, Vylotsk settlement council, Berehiv district, Zakarpattia region. and examples of land tax and rent calculation for our research object are presented. A study of the taxation of real estate other than land is proposed and the determination of the minimum possible value of 1 m2 of a residential apartment in the administrative districts of Lviv as a minimum tax base is highlighted. The object of research is the land of the village settlement. Pushkino, and the secondary market of residential apartments in Lviv. The subject of the study is the methodology of determining the monetary value of real estate, as an integral component of fiscal legal relations in Ukraine. The subject of research: determination of the value of assessment objects for the purposes of taxation and calculation and payment of other mandatory payments. Results of the research. Conducting a normative monetary assessment of the lands of settlements for fiscal needs was studied using the example of p. Pushkino, Berehiv district, Zacarpatski region with justification of the estimated zoning of the territory of the territorial community. All the necessary norms and coefficients for calculating the cost of 1 m2 of land subject to assessment, which ranges from 68.30 UAH/m2 to 99.01 UAH /m2 for a certain assessment area, have been determined. Based on the results of our research, the following cartographic material was formed: a map of the evaluation districts of the settlement, a map of agricultural production groups of soils with their explanation, and a map of the natural and agricultural districts of the Vylotsk settlement council. The land tax for a plot of land with an area of 2455 m2 located within the assessment district № 2, which is 544.48 UAH/year and the rent for a plot of land leased for 25 years for the needs of industry, was determined on specific examples. with an area of 56,044 m2 and located within the assessment district № 5, which amounts to 187,154.48 UAH /year and, accordingly, 15,596.22 UAH /month. List of used literature sources: 1. Land Code of Ukraine, Codes of Ukraine №2768-III (2001, 25 october) (Ukraine). The Official Bulletin of the Verkhovna Rada of Ukraine, (3-4). https://zakon.rada.gov.ua/ laws/show/2768-14#Text. 2. Civil Code of Ukraine, Codes of Ukraine №435-IV (16.01.2003, 16 january) (Ukraine). The Official Bulletin of the Verkhovna Rada of Ukraine, (40-44). https://zakon.rada.gov.ua/laws/show/435-15#Text. 3. Tax Code of Ukraine, Codes of Ukraine №2755-VI (2010, 2 december) (Ukraine). The Official Bulletin of the Verkhovna Rada of Ukraine, (13-14, 15-16, 17). https://zakon.rada.gov.ua/laws/show/2755-17#Text . 4. On Appraisal of Property, Property Rights and Professional Appraisal Activity in Ukraine, Law of Ukraine, №2658-III (2001, 12 july) (Ukraine). The Official Bulletin of the Verkhovna Rada of Ukraine, (47). https://zakon.rada.gov.ua/laws/show/2658-14#Text. 5. On Land Evaluation, Law of Ukraine №1378-VI (2003, 11 december) (Ukraine). The Official Bulletin of the Verkhovna Rada of Ukraine, (15). https://zakon.rada.gov.ua/laws/show/1378-15#Text. 6. On the approval of the Methodology of normative monetary valuation of land plots, Resolution of the Cabinet of Ministers of Ukraine, №1147 (2021, 03 november) (Ukraine). Official Gazette of Ukraine, (88), 441. 7. Hubar, Y., Khavar, Y., & Moshovska, N. (2020). Toolkit for researching the real estate market and establishing general trends in its development. Modern achievements of geodetic science and production, (2), 102-116. 8. Hubar, Y., Khavar, Y., Sai, V., Vynarchyk, L., & Ivakhniuk, K. (2020, December). Investigation of rented immovable real estate right. In International Conference of Young Professionals «GeoTerrace-2020» (Vol. 2020, №1, pp. 1-5). European Association of Geoscientists & Engineers. 9. Vynarchyk, L. V., Khavar, Y. S., & Hubar, Y. P. (2017). Application of the economic-mathematical approach to the assessment of land plots in settlements. A young scientist, (12), 507-512. 10. Hubar, Y. P., Khavar, Y. S., & Sai, V. M. (2018). Research on the method of calculating the market value of the object of evaluation as a function of the sale price of the objects of comparison and the weight of the degree of their similarity. Modern achievements of geodetic science and production, (І-35), 121-127.