Appealing the Assessment: Where the Disputed Number Is Born
The dispute over property tax most often concerns precisely the assessment — the number computed by the tax authority. For an enterprise or organization the annual rate of the property tax is determined at no more than 1 percent of the value of the taxable property. The taxable value is deemed to be the average annual residual book value, computed by the average value of the assets at the beginning and end of the calendar year — and precisely here arises the first disputable point: which value is counted as the basis.
The law also contemplates an increase of this value with respect to immovable property: for assets received before 2000 it must be increased threefold, for assets received from 2000 to 2004 — twofold, and for assets received in 2004 — one and a half times; for assets about whose receipt no information exists, the amount defined by the first subparagraph applies. By contrast, where the enterprise records immovable property numerically on its balance using the revaluation method and has audited financial statements, the said increase does not apply — though the audited statements may be used only for a period of 4 years.
Land Assessment: Base Rates
In the case of land, the subject of the dispute is often the correctness of the base rate. For agricultural and forest lands the annual base rates are differentiated by administrative-territorial units and land categories and are established per 1 hectare, in lari — for arable and homestead land the rate in the case of Tbilisi and Marneuli is 100 lari per hectare, while for other territories it ranges from 95 to 56 lari; for hayfields and pastures it fluctuates from 20 to 5 lari.
By decision of the municipal representative body a tax rate is determined that may not exceed 150 percent of the established annual base rate. For non-agricultural land the rate is computed from a base rate of 0.24 lari per square meter of land per year, and by decision of the municipal assembly it is multiplied by a territorial coefficient, which cannot exceed 1.5. Land allocated for the use of natural resources is taxed at no more than 3 lari per hectare. The tax obligation on land is determined according to the rates in force as of 1 April of the tax year.
The Computation Cycle That Produces the Disputed Amount
The tax period of the property tax is the calendar year. The enterprise submits the declaration to the tax authority no later than 1 April of the calendar year and pays the tax within the same period; the data on taxable property in the declaration are entered according to the past year, while taxable land — according to the current year. The tax on property is paid in the form of a current payment no later than 15 June, and on land — no later than 15 November. Where the expected obligation decreases by at least 50 percent and the payer notifies the authority thereof no later than 1 June, it may reduce the current payment or not pay it at all.
Starting and Reviewing the Dispute
Once the disputed number has appeared, the general rules of the tax dispute apply: the decision is appealed within 30 days of its delivery, and the dispute-review body considers the complaint within 20 days and only within the framework of the complainant's request. This means that appealing an assessment is interlocked with a strict law of time: first the disputable element of the computation — value, category, coefficient — is fixed, and then that element is formulated into a demand.
In practice the ground of a successful complaint is always concrete: either the value has been incorrectly taken from the balance, or the land category is wrong, or the multiplier has been applied to the wrong period. General dissatisfaction with a number does not substantiate a complaint — only establishing an error of computation does.
The Content of the Complaint and the Evidence
In appealing an assessment the complaint must be oriented to the error of computation. In a book-value dispute the enterprise submits its accounting — acquisition documents, revaluation acts, audited statements; in a land dispute — the cadastral data of the plot and the documentation of the category. The authority’s computation is checked against these materials, and the place of divergence becomes the subject of the complaint.
Experience shows that the outcome is decided less by ignorance of the rule than by the completeness of the documentation: a single remaining act bearing on the balance-increase rule makes the complaint incomplete without it. Preparation begins with putting one’s own records in order.
Frequently Asked Questions
What is the enterprise property-tax rate?
No more than 1 percent of the taxable value; with the revaluation method and audited statements the increase rule does not apply.
How is agricultural land valued?
Base rates are differentiated by territory and category, per hectare in lari — 100 to 56 lari for arable and homestead land; a municipality may raise the rate up to 150 percent.
Which periods form the computation cycle?
Declaration and payment — by 1 April; current payment — by 15 June; land tax — by 15 November; land obligations follow the rates of 1 April.
Within what period can an assessment be appealed?
A decision is appealed within 30 days of delivery; the complaint is considered within 20 days, within the scope of the request.
Can the current payment be left unpaid?
Yes, where the expected obligation decreases by at least 50 percent and the authority is notified no later than 1 June.
How We Help on Legal.ge
The specialists of Legal.ge will help verify the assessment and prepare the appeal — from the balance and the category to the coefficient and the deadlines. Contact us — the disputed number is checked by the rules.