Given the long period that has passed since the determination of the zones of the city of Ruse, as well as the lack of a legislative initiative to update the tax assessments of real estate at the national level, last updated in 2008, the mayor of the Municipality of Ruse, Pencho Milkov, proposes to the municipal councilors to approve new zones for the territory of the city of Ruse.
In fulfillment of the legally prescribed rules with art. 51, para. 1 and para. 2 of the Law on Local Taxes and Fees, the Directorate “Local Taxes and Fees” of the Municipal Administration of Ruse receives information on real estate transactions. When processing this information on transactions with real estate in the territory of the Municipality of Ruse, the following differences are found:
In the case of residential properties, there are differences between the real sales value and the tax assessment of the properties where the market prices are 4 to 6 times higher than the tax base for taxation. For transactions with one-room apartments in the “Center” and “Vazrazhdane” areas, the market price is from 40,000 euros, respectively up to 30,000 euros in the other districts of the city, and the tax assessment is within the range of 15,000 BGN to 20,000 BGN In the case of two-room and three-room houses, panel construction in the third zone of the city of Ruse, from BGN 17,300 to BGN 25,200, the tax assessment reaches 60,000 euros. The legislator has normatively determined from 15 to 25 percent taxable base for income from real estate tax. It should be noted that shopping centers and supermarkets have been built in the residential districts of Ruse, health services are offered and the quality of life is equal to the conditions in the central part of the city. A sewerage network has been built in the Sredna Kula and Dolapite neighborhoods. When the tax assessment norms were determined in 2009. a level of 65 to 80 percent of market valuations of properties has been reached. It can be seen that with the lack of modernization of tax assessment norms over the past 15 years, the difference has increased more than three times. This leads to low revenues for the municipalities.
Last but not least, with the adopted OUP of the Municipality of Ruse, part of the localities of the suburban territories are included in the building boundaries of the city of Ruse, namely:
- Locality Krasta alla /former Hristo Makedonski/
- Part of the Pod Leventa area / from Gotse Delchev Blvd. to the building boundaries/
- Part of the Pod Ormana area / from the road to the village of Nikolovo to the building boundaries/
- Part of the Karaach area / from Gotse Delchev Blvd. to the building boundaries/
- Part of the Papaz Dere area / from Gotse Delchev Blvd. to the building boundaries/
- Part of the Kamuschiyat area / from Gotse Delchev Blvd. to the building boundaries/
- On the way to the town of Silistra, Srabcheto area.
These new territories, annexed to the building boundaries of the city of Ruse, should be zoned in the lowest V zone when determining their tax assessment.
All other agricultural territories, outside the building boundaries of the city of Ruse, for which a procedure has been carried out to change their purpose into urbanized territories, should also be included in zone V. The reason for this is the fact that they are not used as agricultural lands, and are built up with buildings for residential, production and other purposes.
The purpose of the proposal is to update the tax assessments of the properties with the real market conditions. No financial or other means are necessary for the implementation of the new regulations. The expected results of its implementation are to balance the budget of Ruse Municipality
The amendment is in accordance with the current Bulgarian law, and from there also in accordance with the law of the European Union
In view of the above, in December the Municipal Council – Ruse will adopt new zones for the territory of the city of Ruse, from which the coefficient for location /Km/, an element of the formula for determining the tax assessment of real estate, is determined, as follows:
1 Zone I, closing between the following streets and boulevards:
Bul. “Bulgaria”, “Lipnik” Blvd., “Ivan Veder” St., “Potsdam” St., Tulcha, Tsvetnitsa St., Tutrakan Blvd., Youth Park, Bratya Obretenovi St., Pridunavski Boulevard St., Pristanishtna St., “Struma”, str. “Stefan Stambolov”, incl. “Snail”.
2. Zone II: “Druzhba 1” residential complex, “Druzhba 3” residential complex, “Vezhdata” residential complex.
3. Zone III: Residential complex “Druzhba 2” /selemetya/, Residential complex “Nova Mahala”, Residential complex “Traktsia”,
4. Zone IV: IPZ /eastern industrial zone/ and ZPZ /western industrial zone/.
5. Zone V: the properties in the areas “Krasta” / “Hristo Makedonski”, “Pod Leventa”, “Galabets”, “Karaach”, “Papaz dere”, “Kamuschiyat”, “Srabcheto”, “Slatina”, included in the construction boundaries according to the OUP, Sredna Kula quarter, Dolapite quarter, DZS quarter and Obraztsov chiflik quarter.
The decision enters into force on January 1, 2024 and cancels Decision No. 503, adopted with protocol No. 29/27.02.1998. of ObS-Ruse