ANALYSIS OF CADASTRAL VALUE AND MARKET VALUE OF LAND IN ORDER TO CHANGE   LAND TAX BY MEANS OF ECONOMETRIC APPROACH TO ASSESSMENT

The use of land in our country is paid. According to the land legislation, land tax or rent is charged for the use of land. All taxpayers and land tenants should be aware that the amount of tax and rent paid by them is determined on the basis of the cadastral value of the land plot. Following paragraph 3 of Article 66 of the Land Code, land assessment can be carried out in accordance with the state cadastral assessment. The authors point out that considering the scale of implemented work, mass assessment methods are the least expensive way for the state to determine the cadastral value. Otherwise, individual specific features of the land plots can not be taken into account. Different economic and mathematical methods and econometric models can be used in determining the cadastral and market value; application of these methods in correct way allows to make an assessment without compromising the results obtained. The authors speak about modern software for computers applied in order to make reliable models of value assessment, which allow to apply an individual approach in order to enhance the validity and integrity of research. Land plot appraisal should be based on the forecast which identifies and forms economic tendencies by means of statistical data analysis and examining the behavior of market participants. A lot of modern methods of forecasting are based on econometric modeling, as econometric modeling provides detailed analysis of the impact of factors on the investigated parameter. Therefore, econometric modeling allows to assess land appraisal by mean of individual approach. Defining the market value and bringing the cadastral value to the market value reduce costs significantly, as the cadastral value is much higher than the market value. In such cases, it is possible to challenge the cadastral value of the land in order to bring it to the market value and calculate an appropriate land tax. If the market value of the land plot is determined, the cadastral value is fixed being equal to its market value.

land tax, cadastral value, market value, owner, land tenant, econometric analysis

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