The Review of Land Registry Classification: Commentary on Ordinance No. 9035 of 2024

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

The Prerequisites for Review of Classification

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

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

The Need for Transparency and Justification

In general, regarding cadastral estimation, the review of the classification of an urban property, adopted on the initiative of the municipal administration pursuant to Article 1, paragraph 335, of Law No. 311 of 2004, presupposes a significant deviation in the relationship between market value and cadastral value compared to the analogous relationship existing in the set of municipal micro-zones and aims to realign the relationships 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%; for this purpose, the administration must prove the prerequisites that legitimize mass reclassification and demonstrate that it has used criteria and methods corresponding to the purely compensatory and realignment purposes of the procedure in question, specifying what operations were carried out and the data used, in order to allow the taxpayer to verify and defend, in fact and in law, also regarding the application phase of the review by micro-zones.

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

Conclusions

Ordinance No. 9035 of 2024 represents an important step toward greater clarity and justice in the field of cadastral review. It emphasizes that, to proceed with a fair assessment, it is fundamental for the municipal administration to adhere to rigorous criteria and adequate justifications. Only in this way can the rights of citizens to a proper evaluation of their properties be guaranteed, avoiding possible abuses and discrepancies in the tax system.

Bianucci Law Firm