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Property tax

Lessons 18 · 1 lessons · E. Sariqov, B. Xaydarov. Fundamentals of Economic Knowledge (Economics), Grade 9, 4th edition. “Huquq va Jamiyat” publishing house, Tashkent, 2019
18

Property tax

Textbook: pp. 82–85
GoalKnow the object and subject of property tax and the tax base (cadastral value, average annual residual value); calculate the tax at a conditional rate.
New words
property tax · mol-mulk solig‘icadastral value · kadastr qiymatiobject of tax · soliq obyektisubject of tax · soliq subyekti
Explanation

Property tax is collected on housing, flats, country houses, garages and other buildings and structures; they are the object of the tax, and their owner is the subject (payer). For individuals the tax base is the cadastral value of the property, that is, a value assessed with the market price taken into account; the earlier inventory value did not reflect price changes. The tax is calculated on the value as of 1 January each year and the tax authorities send a payment notice; if several people own the property, each pays according to their share. For legal entities the base is the average annual residual value of property: the 12 month-end residual values are added and divided by 12. Rates, relief (for example, a tax-free area for pensioners or large families) and other details change over the years and are given in the Tax Code, so examples use a conditional rate.

Worked examples
The cadastral value of a house is 300 000 000 so‘m and the conditional rate is 0.2%. Tax = 300 000 000 · 0.2 : 100 = 600 000 so‘m a year. If the house belongs to two equal owners, each pays 300 000 so‘m.
The sum of a firm’s month-end residual property values is 7 200 000 000 so‘m. Average annual residual value = 7 200 000 000 : 12 = 600 000 000 so‘m. At a conditional 2% the tax = 600 000 000 · 2 : 100 = 12 000 000 so‘m.
Class activity

“Tax notice”. Pairs receive a card of a conditional house or firm: a cadastral value or 12 monthly residual values. They find the base, calculate the tax at a conditional rate and discuss why valuation is tied to 1 January.

Practice
1
Name the object and the subject of property tax.
2
A flat’s cadastral value is 240 000 000 so‘m and the conditional rate 0.25%. How many so‘m is the tax?
3
The sum of a firm’s month-end residual values is 9 600 000 000 so‘m. What is the average annual residual value in so‘m?
4
Why is the cadastral value, not the inventory value, taken as the tax base?