1. International Conference Mass registration and valuation December 08 – 09, Pilot project on real property mass formation and valuation for taxation in Belarus Dmitry Rytvinski Project manager Head of valuation department National Cadastral Agency Minsk, Belarus

2. Belarus on the map of Europe

3. Key facts about Belarus
Capital: the city of Minsk
Belarus is situated in the eastern part of Europe
Belarus borders with Russia, Ukraine, Poland, Lithuania and Latvia
Area: 207,600 km²
Population: 9.5 million people (17 of 44 in Europe)
Administrative division: 6 regions (Oblast)
Official languages: Russian and Belarusian
GDP: 40.6 billion USD (81 of 186 in the WORLD per person)
Rating of "Doing Business" (World Bank ranking): 2016/2017 : 50/37-th place/
See more interesting key facts on the website and welcome to Belarus.

4. National Cadastral Agency (NCA)
Founded: 1998
Founder: The State Committee on Property of the Republic of Belarus
Functions:
land and real property administration
manage registers
registration and formation of real property
IT-software
mass and individual valuation
GIS systems,
information from registers

5. National Cadastral Agency (NCA)
Structure:
Valuation department – 25 persons
Legal department – 8 persons
IT-department and software support – 34 persons
Formation and registration department – 35 persons
Administrative staff – 32 persons
State Registers:
State Property Register (
Administrative and territorial units of the Republic of Belarus Register (
Value Register (cadastral value of land plots and taxation base for land plots) (
Price Register (
Address Register (

6. Key facts about mass valuation of lands in Belarus
NCA carries out the cadastral valuation of urban lands only
Experience from 2000 – 16 years!
Professional staff, some of them from the early
beginning
Swedish knowledge and experience support mostly,
other mass valuation market oriented international influence

7. Key facts about mass valuation of lands in Belarus
The Types of LANDS Functional Use:
single-family houses
multi-family houses
industrial property
commercial property
recreation property
Types (categories) of Valued Lands:
settlement lands (cities, towns)
lands in the settlements for summer residence
lands for industry, services and trade, located outside the territory of the settlements (Gas Stations, hotels, cafes)

8. Mass Valuation of Lands in Belarus Today
Periodicity of work should be carried out at least 1 every 4 years
Responsible contractor: NCA
Plan for The Types of LANDS Functional Use :
(it’s not a mistake)
multi-family houses
single-family houses
recreation property
commercial property
industrial property

9. Basic principals for the Mass Valuation in Belarus
Mass valuation is based on market information (sales transactions, offering for sale and rent, etc.)
Statistical methods for modeling + GIS using spatial Data information
The value of the plot is an x% in the total value of the real property UNIT
Real estate market analysis:
market capacity
price trends
qualitative and quantitative characteristics of properties
investment costs during construction
coverage of the engineering communications
city-forming structure and others

10. Results of Mass Valuation of Lands use for:
Taxation (since 2004)
Land rent (right to make rent contract)
Mortgage
Expropriation
Sale transaction to private property
Auction
etc

11. Pilot project: new challenge
WHAT IS THE WAY TO THE SUCCESS?

12. GUESS WHAT? CHALLENGE
One head is good,
two - creative

13. Pilot project: profile
Full name: pilot project on real property mass formation and valuation for taxation in Belarus.
Initiator: NCA, State Committee on Property of the Republic of Belarus, Ministry for taxation of the Republic of Belarus
Strategic mission: develop an effective mass valuation system of real property for taxation in Belarus
Sponsor: the Government
Responsible contractor: NCA
Time frame: 01/15 – 06/16
Territory: Kobrin district (include Kobrin town) and 1 administrative district in Minsk

14. Pilot project: objectives
DATA mining: «you can gather & store what ever information you want but without BIG DATA analysis it’s just an informational rubbish»
Find a cheap technology to get information in one GIS oriented database
Identification and collecting of information from papers into database (data about characteristics of all properties on the pilot territories)
Make new classification of real property: easy to understand, usable for different real property management purposes

15. Pilot project: objectives
Analyze the result and make offers for organizing new TAX property system based on market value
Mass VALUATION of real property objects based on real property market information
Analyze the result and make offers for organizing appeals system
Make a feasible study for the Government for understanding total cost for the whole country

16. Pilot project: Key facts about SOVIET District in minsk
Population of MINSK: 2 mln
Area: 307 km2 (Soviet district – 20,5 km2 )
Numbers of real property objects in Real Property Register (in the beginning of the project):
Land Parcels: Minsk
Soviet district.
10-15% without spatial information.
Approximately 85% of all land parcels.
Buildings: (4 564 Soviet district). Approximately 90% of total amount.

17. Pilot territories: Key facts about Kobrin district
Location: Brest region
Population:
Area: km² (6,6% of Brest region, 1% of the country)
Numbers of real property objects in Real Property Register:
Parcels: – approximately 33% of total
amount without spatial information.
Builds: – approximately 75% of total
amount.

18. MASS VALUATION SYSTEM OF REAL PROPERTY BASED ON MARKET INFORMATON?
THE MAIN QUESTION
WHAT ARE PROS AND CONS
FOR THE COUNTRY TO HAVE
MASS VALUATION SYSTEM OF REAL PROPERTY
BASED ON MARKET INFORMATON?

19. WE WILL Guide YOU THROUGH 4 main BLOCKS OF THE SYSTEM

20. DATA NATIONAL CADASTRAL AGENCY Aliaksei Khitro
Deputy Head of Valuation Department
Elena Dubovik
Lead GIS specialist

21. Who owns the information, he owns the world
Nathan Rothschild

22. Data. Challenge Property register Price register Value register
State property register
Price register
Value register
Register of administrative-territorial units
Register of characteristics
Address register

23. Data More than 20 datasources NCA registers & data
External registers & data
New methods of data collection
Usage of remote sensing results
Usage of objects’ panoramic photos
Extended list of characteristics
Property declarations
New methods of data analysis
Data mining
Data mapping

24. Data. Directions DATA COLLECTION MARKET DATA ATTRIBUTE DATA GEODATA
Sales data
▪ Price
▪ Date
▪ Description
Land data
▪ Size
▪ Use
▪ Owner
Property location data
▪ X, Y
▪ Shape
Incom&expense data
▪ Rents
▪ Overal rates
▪ Description
Building data
▪ Size ▪ Construction
▪ Use ▪ Condition
▪ Age ▪ Other
Value factors data
▪ X, Y
▪ Neighborhood
▪ Area
Cost data
▪ General
▪ Specific
Room data
▪ Size ▪ Construction
▪ Use ▪ Condition
▪ Age ▪ Other
Visualization
▪ Map
▪ Interface
▪ Area

25. GIS. Objectives Location Visualization geoprocessing models
geodatabase
maps
databases

26. Quality of GIS-information. Houses
Before
After
Map legend
Map legend
Boundary
Boundary
Land plots
Buildings
Land plots

27. Quality of GIS-information. Garages
Before
After
Map legend
Map legend
Land plots
Garages
Land plots

28. Results of data collecting Soviet district of Minsk
Kobryn
Kobryn district
Property units
92 465
41 181
52 802
unregistered 5%
20%
26%
nonresidential property
residential property
Data quality
Before
After

29. Data. Main Principle Land Building Property unit Purpose use
Characteristics
Location

30. Data. Collection Utility providers Paper archives Property register
Price register
Property register
manually
manually
PMF.NCA.BY
Value register
Local databases
manually
GIS
Register of administrative-territorial units
partly manually
Other registers
Tax register
????
Register of characteristics
???
Address register
State property register

31. Offers Utility providers Population register & rents Local databases
Register of legal entities
Population register
Utility providers
Local databases
insurance
Price register
Property register
RE.NCA.BY
bank
Value register
police
vechicles
Register of administrative-territorial units
Tax register
Register of characteristics
Other databases
Address register
State property register

32. Data. Problems Data collection & storage Data unification
Data analysis
Statistical research
Business intelligence

33. Das Magazin:
Trump could win thanks to Big Data and new voters method of analysis

34. Pilot project for me
Chance
Challenge
Experience
Memories

35. MASS VALUATION NATIONAL CADASTRAL AGENCY Aksana Salianka Anton Malchuk
Head of individual valuation division
Anton Malchuk
Head of cadastral valuation division

36. B. Property attribute data
MASS VALUATION
A. Market data
B. Property attribute data
1. Data collection and maintenance
Data quality review
Data distributions
Market patterns
Price trends
2. Data analysis
3.Model development
4.Model application, review, reconciliation & reporting
Application
Review & reconciliation
Final value determination
Specification
Calibration
Quality assurance
Reporting & documentation

37. 21 purpose use property groups
CLASSIFICATION
Purpose use is not defined
Purpose use is defined
FINISH
START
Residential property
Non residential property
3 groups
18 groups
21 purpose use property groups

38. Cadastral value is assessed per Unit
MAIN PRINCIPLE
Cadastral value is assessed per Unit
Sale transactions
Sale offers
Rent ratios
Etc. market data
Purpose use
Characteristics
Location
100%
Land plot
Building +
30%
70%
10% - 80%
20% - 90%

39. Sales comparison approach
VALUATION MODELS
Sales comparison approach
Cost approach
Multi-family houses
Model №1
Industry
Model
№ 7
Family houses
Model №2
Agriculture (farm)
Offices;
Finance, banks;
Health service;
Education
Model №3
Public buildings
Hotels
Retail & pharmacy
Food service
Service
Casino
Model №4
Special property
Warehouses
Industrial
Agriculture (farm)
Power & engineering support property
Model №5
Garages & parking places
Model №6

40. VALUATION VARIABLES Location 7 VALUATION MODELS Age Size Quality
Special characteristics
Construction characteristics
Utilities
Interior
Etc.

41. RESULTS. TOTAL VALUE

42. RESULTS. TOTAL VALUE

43. Kobrin. Single family houses
RESULTS. THE SOCIAL ASPECT
Kobrin. Single family houses

44. QUESTIONS How many variables is optimal for mass valuation models?
How many mass valuation models is optimal?
Connection between number of variables & appeals
Revaluation period

45. Pilot project for me Challenge Experience Professional development
Perfect team

46. THE PILOT PROJECT’S LEGAL SUPPORT
& APPEALS
Alesia Khadasevich
Senior Legal Adviser,
Department of Registration Activities Legal Support

47. Objectives New relationship legal regulation of
Circumstances and conditions
Responsible persons and their competence
Contents and life cycle
Results and their application
Appeals

48. State information resources
What should be changed?
Valuation
State registration
State information resources
Tax
Legislation about

49. of the Republic of Belarus
Tax legislation
Tax Code
of the Republic of Belarus
Property tax Land tax
PROPOSITIONS
Establishment of a single tax on a built-up land plot (with the exception of one on the leased land plots)
The tax regulation adjustment

50. State registration legislation
Lack of data needed for property valuation that only an owner has
PROPOSITIONS
The transfer act forms based on the types of real estate functional purpose confirmation
Including a transfer act as a necessary document to register a deal with real estate

51. State information resources legislation
Necessity to create one unified information resource for the purposes of cadastral valuation
PROPOSITION
Confirmation of an act about creating Value Register and order of it’s maintenance

52. Valuation legislation
Lack of clear regulations on cadastral valuation
PROPOSITION
Confirmation of an act about the order of cadastral valuation implementation and appealing against its results

53. Reaction to innovations
Appeals
Reaction to innovations

54. Appeals. When?
Mass
Valuation
Cadastral
Value
New Tax Size
Appeals

55. Appeals: world practice
Body
tax authority
court
special organization
valuation (cadastral) organization
Terms
3 months
1 month
8 weeks

56. Do you disagree with property cadastral value?
To Appeal or Not
Do you disagree with property cadastral value?
1. I feel uneasy not knowing how it works.
Pre-Appeal
Submit a request for applied valuation methodology explanation
2. Yes. I don’t agree!
Make an appeal
(6 months from the moment
of information addition
into the Value Register)

57. Appeals Appeals procedure Pre-trial order Court order
Appeals against property characteristics
Appeals against property cadastral value

58. Appeals against property characteristics
Territorial organization of the state registration
Application
Unregistered property
Registered property
Technical inventory + state registration
Technical characteristics verification
New cadastral value

59. Appeals against property cadastral value
Application
Commission of National Cadastral Agency
Documents
Consideration by The Commission
Abandonment without consideration

60. Appeals against property cadastral value
Abandonment without consideration by
The Commission
expired appeal
individual valuation held place earlier than 6 months prior to filing an application
difference between cadastral value and individual value:
less than 15 % - Minsk, regional centers
less than 20 % - other settlements

61. Appeals against property cadastral value
Consideration by The Commission
Decision
New cadastral value
Individual valuation results as new cadastral value

62. Questions Appeals statistic
Different appeals procedure for transient period
Compensatory mechanism for owner’s expenses on real estate individual valuation
Who can make an appeal? On what grounds?

63. Pilot Project for me

64. THANK YOU FOR YOUR ATTENTION