The government recently adopted a regulation amending the regulation on closer criteria and methodology for determining the market value of real estate. The government’s document stipulates that the municipality may determine the tax base on the average market price of a square meter of real estate for the three years preceding the year for which the tax is calculated, the Monstat statistics agency reports. Thus the request to reduce the basis for determining the property tax in Municipality of Bar has been approved and Bar residents will pay a lower property tax.
“If, according to the Monstat data, the average market price of a square meter of real estate increases by more than 20% compared to the previous year, the municipality can calculate the tax rate base on the average market price of a square meter during the three years preceding the year for which the tax is determined,” government’s regulation says.
So far, the average market price of a residential property has been determined on the basis of the average market price of a square meter of newly built residential facilities in the municipality, for the year preceding the year for which the tax is determined.
The Bar City Council required the government in late April to urgently amend the regulation, because the earlier regulation stipulated calculating the tax base according to the average last year’s price of €1,500 per square meter of new building in Bar.
Councillors were not satisfied with these data and methodology according to which Monstat calculated the price and said that the citizens of Bar would pay significantly higher tax on apartments, because this price was above the average market prices of squares in other Montenegrin municipalities.
