Property taxation system at a new implementation stage

From 2012, the residential property in the villages and communes of the Chisinau and Balti municipality will be taxed according to their market value. The minimum tax rate will be 0.05%, while the highest tax rate 0.3%, Info-Prim Neo reports. Under the amendments to the legislation approved by the Government, a minimum tax of 0.1% and a maximum tax of 0.3% of the market value will be put on the farmland in these settlements. The local public authorities are to set the precise tax rate, as in the case of residential property, depending on the possibilities of accumulating incomes into the local budget. There will be raised the lowest tax rates on the residential property in municipalities and towns, the garages and plots occupied by them and on the plots of the fruit-growing agricultural associations with or without constructions on them. The minimum rate will be increased from 0.02 to 0.05%, while the highest rate – from 0.25 to 0.3%. According to the Ministry of Finance, this will lead to an increase of 10-20% in the tax on real estate, depending on the locality. Furthermore, the provisions concerning the non-taxing of buildings that are less than 50% ready will be annulled. Thus, all the real estate will be taxed regardless of the completion degree.