“The new cadastral value will be justified by information on the market value of the property during the period from January 1, 2012 to July 1, 2022, not exceeding 80 percent of the average price of real estate as of July 1, 2022. Changes in the cadastral value will also ensure an objective connection between legal use land with land as an active value. This means that changes in the cadastral value will be different. In some cases, the cadastral value will increase significantly. Thus, the actual amount of the cost of use will also increase.”
As an example, the cost of using land for a private house in Lielupe is given. Currently it is 4,728 euros per year, and following the increase it will be 17,906 euros per year. Or almost one and a half thousand euros per month.
As for apartment buildings, the cost of land rent for residents of such buildings in Maiori will increase from the current 135 euros to 800 euros; in Lielupe – from 266 euros to 1840 euros; in West Riga from 192 to 400 euros; in the area of Gertrudes Street – from 192 to 400 euros.
However, for some areas of Riga even a reduction is envisaged – for example, in Purvciems, from the current 88 euros per year to 74 euros.
The Ministry of Justice also thought regarding the consequences: “If such a rapid increase in regular expenses occurs suddenly for a household, this can lead to a significant deterioration in the social status of the person or even an inability to pay all the expenses necessary for the household. This, in turn, can lead to the loss of housing.” .
Well, what is the conclusion? “Give residential building owners a transition period in which to plan further financial actions.”
Can the state do something? It’s unlikely: “A remedy that would require additional financial resources from the state cannot be considered as sparing. If a significant increase in user fees is solved with the involvement of the state, for example, in the form of tax breaks, this would mean a loss of state revenue.”
Therefore, the Ministry of Justice assumes that from January 1, 2025 to December 31, 2028, “the user fee will vary.”
The Ministry of Justice also writes in the annotation that it heard the opinion of the Land Reform Committee and the People Against the Land Barons societies. Well, let’s see how the matter is resolved in practice…
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2024-04-19 16:35:13
