Problems and controversies of reforming the taxation of real estate and land in Ukraine

Introduction. The National Revenue Strategy until 2030 defines the need and steps towards the transition from taxation of real estate in Ukraine by area to its taxation by market value. Problem Statement. Given that this transition is expected to take place in five years, as well as the list and sequence of steps envisaged on the way to such a transition, it raises questions about the realism of the procedure and timing of the real estate tax reform. The purpose is to determine a realistic procedure for the transition from taxation of real estate by area to its taxation by market value. The methods used are theoretical generalization, comparative and system analysis. Results and conclusions. A critical analysis was carried out of the lack of a systematic approach in Ukraine to reforming real estate and land taxation, their reform is not independent of each other, while it should take place in a coordinated manner, in accordance with a single program, and be managed from a single centre. Based on the analysis of the experience of introducing ad valorem taxes on real estate in certain countries – new EU members, it is substantiated that the assessment of real estate should be preceded by: completion of the formation of the State Register of Real Rights to Immovable Property and the State Land Cadastre, integration of all property registers and cadastres in a single electronic register of land and real estate, creation of a single complete and reliable database on the characteristics of all real estate objects and land plots necessary for conducting a mass assessment. The steps that need to be taken in the process of preparing for the mass valuation of real estate and land in Ukraine have been identified, including: determining a single body responsible for the mass valuation; grouping real estate objects and land plots according to their intended purpose; creating value zones and value maps for real estate objects and land plots; developing a methodology for the mass valuation of real estate and land, models and algorithms for such valuation; developing and adopting a Law on the Mass Valuation of Real Estate and Land; conducting a trial mass valuation and publishing its results; conducting a broad discussion and consultations with stakeholders on the results of the trial valuation; improving valuation models based on the analysis of the results of the trial valuation, as well as substantiated proposals from stakeholders. A conclusion was drawn about the risks of implementing a scenario in which the valuation of real estate objects and the introduction of an ad valorem tax would be carried out without completing the filling of the State Register of Real Rights to Immovable Property and the State Land Cadastre, in the absence of a complete and reliable database of the characteristics of all real estate objects.