Cadastral value – Real Estate Appraisal

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What is the cadastral value?

The cadastral appraisal or the cadastral value is the means by which the fiscal value of the properties and buildings attached to them is determined, This fiscal (cadastral) value serves to establish the taxable base of the property tax, the valuation of the property is an essential requirement for the Cadastre Office in the CDMX Treasury issue the corresponding settlement.

What are the dates for the timely submission of the Notice to Determine Taxes?

The timely electronic submission of the Notice to Rule Local Taxes in Mexico City is on March 15 of each year, for example: (2020), corresponding to the year of the previous year (2019) and the Report will be submitted no later than May 31 of the current year, (2020), through the System for the Presentation of Opinions (Sipredi) it is important to mention that this opinion process is carried out by accountants.

Who is required to carry out a cadastral appraisal according to the CDMX Fiscal Code?

according to Article 58 of the Tax Code of Mexico City Individuals or legal entities are bound by the Opinion under the following condition:

"Those that have properties for use other than residential or mixed-use properties and have a cadastral value for each one or as a whole that exceeds the value of $28,388,822.82"
(TAX CODE OF MEXICO CITY, sf)

According to Article 126 of the Tax Code of the CDMx:

“The physical and legal persons who own the land or the land and the buildings attached to it are obliged to pay the Property Tax, regardless of the rights that a third party has over the buildings. The owners will also be obliged to pay the property tax for the properties they own, when the owner is not known or the property right is controversial.
(TAX CODE OF MEXICO CITY, sf)

Owners or holders must determine and declare the cadastral value of their properties, even if they are exempt from paying property tax.

Taxpayers may choose to determine and declare the cadastral value of their properties, applying to them, the unit values referred to in article 129 of this Code, as well as the methodology established in this legal order."

He Article 129 of the CDMX Tax Code, mentions that the Assembly will annually issue the list of unit values of the land, constructions attached to it, special installations, accessory elements or complementary works, which will serve as a basis for taxpayers to determine the cadastral value of their properties and the property tax at their expense. . These unit values are issued by the authority in the month of December of each year.
(TAX CODE OF MEXICO CITY, sf)

What is the validity of the cadastral appraisals according to Article 24 of the CDMX Fiscal Code?

The appraisals to update the cadastral data and to pay the property tax are valid for one year, counted from the date they were made.

Application Rules for the realization of a Cadastral Appraisal.

For the application of the Table of Soil Unit Values to a specific property, the corresponding Mayor's Office will first be determined. Depending on its location, it will be verified whether it is included within the Cadastral Colony Table of type Enclave of Value, Corridor of Value or Area of Value, the corresponding unit value will be multiplied by the number of square meters of land, thus The total value of the land of the property will be obtained.

For the application of the Table of Unitary Values of the constructions, the covered surfaces or roofs and the surfaces that do not have covers or roofs will be considered, as the case may be. To determine the value of the construction, the property will be classified in the type and class that corresponds to it: with this type and class, the unit value of the construction will be taken, established in the table of unit values of the constructions and will be multiplied by the meters squares of the construction, with which the total value of the building will be obtained.

To determine the value of the construction of a property for residential use, all covered spaces proper to this use will be considered, including, among others, service rooms, patios, parking spaces, garages.

In the case of properties for residential use subject to the condominium property regime, the proportional part of the common areas that corresponds to them according to their undivided will also be considered. These common areas will be considered as residential use if they are in the same building body, if they are structurally separated they will be classified according to their uses, level ranges, classes and ages, each covered and uncovered use will be considered as applicable.

The total value of the construction of real estate for residential use subject to the condominium property regime will be obtained from the sum of the value of the private construction and the value of the common construction.

In buildings for non-habitation usel, each covered and discovered use will be considered as applicable, its type and class will be determined that corresponds to it. The properties in this situation must determine the value of the construction with the total sum of each one of them.

For the property that has different uses, including housing, when people reside occasionally or to protect said properties, the value of each one must be taken and added to the rest in order to obtain the total value of the construction.

A reduction will be applied to the result obtained according to the number of years since the construction was completed or since the last remodeling. that has affected at least 30% of the built surface considering all the floors of the property, at a rate of 0.8 % for each year passed, without in any case deducting more than 40%. If the properties have construction portions with different completion dates, the reduction will proceed for each portion, according to the number of years that have passed since each of them was completed.

When the property has special facilities, accessory elements or complementary works, the resulting value will be increased by 8%.

The value of the land of property, of its constructions and its special facilities, as the case may be, will be added to obtain the cadastral value of the property.

Requirements for carrying out a cadastral appraisal.

It is important to have the following documents electronically:

Copy of the deed or condominium regime where the measurements and boundaries of the property or land come from.
Copy of the current property and water bill.
Copy of the INE of the interested party.
Manifestation of construction or completion of work.
Architectural and structural plans as the case may be, preferably in autocad. They must contain (plants, sections and facades).
Additional information that may be helpful in carrying out the appraisal.

How to obtain the cadastral value of a house, apartment, office, industry, hotel, school, hospital, land, etc. etc.?

PROCEDURE:

1.- Identify if the land is located in a value area, value enclave or value corridor.

2.- Search the value table for the unit value of the land for the value area, value enclave or value corridor that corresponds.
3.- Multiply this value by the land area of the property. In the case of condominiums, apply the respective undivided percentages.
4.- Classify constructions by type: use, level range and class.
5.- Locate the applicable unit values in the tables of construction unit values.
6.- Apply the demerits by age to each type of construction established, having as a limit a maximum depreciation of 40 %, that is to say that the depreciation factor can reach a minimum value of 0.60.
7.- If the property has special installations, accessory elements and complementary works, 8 % must be added to the value of the constructions.
8.- Add the results obtained from land, constructions and special installations, accessory elements and complementary works.

Who can make a cadastral appraisal?

Expert appraisers registered with the tax authority.
credit institutions,
Civil or commercial companies whose specific purpose is to carry out appraisals.
General Directorate of Real Estate Assets
Public Brokers.

When is the property tax payment made?

The taxpayer declares once a year the cadastral value of his properties. Payments can be bimonthly or annually.

Example of the cadastral analysis of a Commercial Premises

The Valuation Units are governed by tariffs that apply to the different price ranges of the properties that can go from $3000.00 to $50,000.00 and in the case of large constructions such as office buildings, industrial warehouses, shopping malls, hotels , schools etc A personalized quote is made based on the work to be carried out, such as: physical inspection of the properties, cabinet work, certification and signature of the expert with treasury registration.