Review of Cadastral Classification: Commentary on Ordinance No. 9035 of 2024

The recent Ordinance No. 9035 of April 4, 2024, issued by the Court of Cassation, offers important insights into the review of cadastral classification for urban properties. In a context where market values and cadastral values can present significant discrepancies, it is crucial to understand the prerequisites and procedures that the municipal administration must follow to carry out such a review.

Prerequisites for Classification Review

According to the Court's ruling, the review of a property's cadastral classification must be justified by a significant deviation between its market value and its cadastral value. Specifically, the judgment clarifies that the administration must demonstrate how this deviation aligns with that existing within the municipal micro-zones, in order to ensure fair and uniform treatment for all taxpayers.

• Market value must be analyzed in relation to cadastral values.
• The review cannot result in a percentage increase exceeding 35% for the properties concerned.
• The administration bears the burden of proving the prerequisites for reclassification.

The Need for Transparency and Justification

Generally. In matters of cadastral appraisal, the review of an urban property's classification, adopted on the initiative of the municipal administration pursuant to art. 1, paragraph 335, of Law No. 311 of 2004, presupposes a significant deviation in the ratio between market value and cadastral value compared to the analogous ratio existing within the municipal micro-zones. It aims to realign the ratios between average market values and average cadastral values concerning the so-called anomalous micro-zone, attributing to the properties within it a percentage increase not exceeding 35%. To this end, the administration must prove the prerequisites that legitimize mass reclassification and demonstrate that it has used criteria and methods corresponding to the purely equitable and realignment purposes of the procedure in question, specifying the operations performed and the data used, in order to allow the taxpayer to exercise their right to defense, both in fact and in law, including with respect to the micro-zone review application phase.

This passage highlights the importance of justification by the administration, which must provide a clear and detailed account of the operations performed and the data used during the review. Transparency is essential to guarantee the taxpayer's right to defense, allowing them to verify the administration's actions.

Conclusions

Ordinance No. 9035 of 2024 represents an important step towards greater clarity and fairness in cadastral reviews. It emphasizes that, in order to proceed with a fair assessment, it is fundamental for the municipal administration to adhere to rigorous criteria and adequate justifications. Only then can citizens' right to a correct valuation of their properties be guaranteed, avoiding possible abuses and discrepancies in the tax system.