Tax notice on real estate: when you should request a reconciliation

A tax notice‑decision on real estate tax for an individual is not just a “payment slip” but an official decision of the supervisory authority determining your tax liability for a specific year. Such notices‑decisions are issued by the State Tax Service based on data from state registers and information from local self‑government bodies and are sent to owners by 1 July of the year following the reporting year. Understanding the structure of this document, payment deadlines, and the data reconciliation mechanism helps not only avoid penalties but also protect yourself against erroneous assessments or loss of tax benefits.

1. What a tax notice‑decision contains and why you should read it carefully
   A standard real estate tax notice includes: taxpayer details, the address and characteristics of the property (residential or non‑residential, its area), the tax rate, the amount of exempt area, the total amount payable, and the payment details.
   · The explanatory section or annex often contains a separate calculation for each property, which allows you to check whether all houses, apartments, non‑residential premises, and their shares are reflected correctly.
   · An individual must pay the annual tax liability within 60 days from the date of delivery of the notice – it is the date of actual receipt, not the date of issue, that starts the payment period.
   · If the notice is returned to the tax authority with a postal mark “storage period expired”, the Supreme Court indicates that this does not make the notice unlawful: the obligation to pay the tax remains, and the payment period is counted from the moment the taxpayer had an opportunity to receive the letter. Therefore, it is important to monitor your postal address and the taxpayer’s e‑cabinet.
2. Key figures in the notice to check first
   List of properties: verify that all properties listed in the notice actually belong to you – mistakes in registers may result in “extra” properties or missing ones.
   · Property area: the total area of apartments, houses, or non‑residential premises must match the figures in your title documents; errors of just a few square metres can significantly affect the tax amount where rates are high.
   · Applied benefits: check whether the benefits provided by Article 266 of the Tax Code and your local council’s decision are taken into account (for example, 60 m² of non‑taxable area for an apartment or 120 m² for a house, benefits for large families, combatants, internally displaced persons, etc.).
   · Tax rate: it is set by the local council within the maximum limit defined by the Tax Code (no more than 1.5% of the minimum wage per 1 m²), and rates may differ for various types of property. If the rate indicated in the notice does not correspond to the published council decision, this is a ground for reconciliation and correction.
3. When and how to request data reconciliation
   Subparagraph 266.7.3 of the Tax Code entitles the taxpayer to apply to the supervisory authority at their tax address with a written request for data reconciliation. This applies to both residential and non‑residential property, including shares in joint ownership.
   · Grounds for reconciliation include: discrepancies in the number of properties (there are “extra” buildings or some are missing), incorrect area, unaccounted benefits, suspicion of an incorrect rate, or a wrongly calculated tax amount.
   · It is advisable to initiate reconciliation immediately after receiving the notice, without waiting for the 60‑day deadline to expire, so that the tax authority has time to recalculate the liability and send a new notice‑decision before the payment deadline.
   · If the reconciliation confirms an error in the tax authority’s data, the authority recalculates the tax amount and sends a new notice; the previous one is automatically considered cancelled (withdrawn), and only the amount in the updated document must be paid.
4. How to prepare for reconciliation: documents and arguments
   Attach copies of title documents for each property to your reconciliation request: sale and purchase agreement, ownership certificate, extract from the State Register of Property Rights, technical passport indicating the exact area.
   · If you claim a benefit, prepare documents confirming your entitlement: a combatant ID, documents confirming large‑family status, an IDP certificate, local council decisions granting additional benefits, etc.
   · In the application, clearly describe which specific data in the notice are incorrect: address and area of the property, date of acquisition or termination of ownership, type of property (residential/non‑residential), applied rate; this will help the tax officers verify the information quickly.
   · If your properties are located in different settlements but you are registered at one tax address, reconciliation is still carried out at your tax address; it is important to list all properties in the application and attach documents for each of them.
5. What to do if you still disagree with the notice after reconciliation
   If, after reconciliation, the tax authority insists on its calculation, the taxpayer has two options: an administrative appeal to the higher tax authority or a court challenge of the notice; neither option automatically releases you from the obligation to pay, but they give a chance to have the assessment cancelled or reduced.
   · It is crucial to meet the deadlines: a complaint to the tax authority must be filed within 10 calendar days from the date of receipt of the notice, and a lawsuit must be filed within six months; missing these deadlines may deprive you of effective protection.
   · In its case‑law the Supreme Court stresses that errors in the date of issue or dispatch of the notice are generally not, by themselves, grounds for cancellation if the liability is assessed within the limitation period (1,095 days) and the property and rate are determined correctly. Therefore, disputes mainly focus on the actual data on the properties and ownership rights.
   · At the same time, you should correct information in the registers (for example, update the State Register of Property Rights in respect of the area or co‑owners), so that in subsequent years the tax is calculated correctly.

If you have questions or encounter issues related to verifying the correctness of a real estate tax notice‑decision, preparing documents for data reconciliation with the tax authority, challenging erroneous assessments, or planning the tax burden when buying, selling, or donating real estate, seeking qualified legal and tax assistance will help you detect errors in time, reduce the risk of penalties, and protect your property interests.
Author – Maksym Bahniuk, Head of Tax and Customs Law Practice at the Attorneys Association “Legal Company WINNER”.