The Constitutional Court declared unconstitutional the provisions on the application of standard prices when leasing land in public ownership.
This week the Constitutional Court declared clauses 8 and clause 11 of Article 10 of the Law on the standard price and procedure for the purchase and sale of land unconstitutional. Until changes are made by Parliament, local authorities will be able to charge a fee for land rental relating to private/privatized property, which will be at least 2% of the market value of the land plot, determined by the appraiser in accordance with the Law on Valuation Activities, and which will not be lower than the standard price , calculated in accordance with the law. The Constitutional Court ruled that the use of only standard prices violates the principle of financial autonomy of local authorities. Also, this rule can harm the budget of an administrative-territorial unit, since the pricing formula does not allow the local government to take into account the market price. In order to avoid a legislative vacuum, the Constitutional Court considered it necessary to make a temporary decision. The Congress of Local Authorities (CALM) called the decision historic. This is the first decision of this kind by the Constitutional Court at the direct request of the local council, adopted on the basis of an appeal from the Congress of Local Authorities and recommendations of the Council of Europe. “Following the previous decision of the Constitutional Court on the abolition of restrictions on local taxes and fees, the new decision transfers the concept of local autonomy and the full and exclusive powers of the local public administration in the management of local affairs, without the traditional and offensive interference of the central authorities,” said CALM head Viorel Furdei. It is worth noting that currently the annual rent for publicly owned lands on which privately owned facilities are located depends on the purpose of the leased lands. It cannot be less than 2% and should not exceed 10% of the standard price of land calculated for its respective purpose, with a number of exceptions. One of them provides that for publicly owned lands on which privatized objects are located, the annual rent is set as a percentage of the standard price of land calculated for its respective purpose, as follows: 2% - for the municipality of Chisinau, including populated areas items included in its composition; 1.5 - for the municipalities of Balti, Bender, Tiraspol; 1% - for the remaining municipalities and cities of Anenii Noi, Criuleni, Ialoveni, Straseni; 0.5% - for other cities; 0.2% - for villages (communes). // 02.11.2023 — InfoMarket
