Italy's 2016 Stability Law has provided important updates
regarding the determination of the cadastral income from
Since 1 January 2016, determination of the cadastral income from
buildings with a special and specific destination, to be recorded
under group D and E cadastral categories (including photovoltaic
installations), is carried out by means of a direct estimate. The
estimate factors in soil and the constructions and elements
structurally connected with them that enhance quality and
usefulness, within the limits of ordinary appreciation.
The same direct estimate excludes machinery, devices, equipment
and other functional systems to the specific manufacturing process.
The effect of the above would seem to lead to a solution to the
controversial issue of the IMU property tax on the so-called
"bolted" installations, ie. those installations
consisting of machinery secured to the ground in a non-structural
The previous legislation thus provided that, for instrumental
property belonging to D and E categories, the cadastral income be
determined through a process of direct estimation. The 2015
Stability Law, also recalling the clarifications provided by
circular no. 6/2012 of the Territorial Agency, had confirmed that
these properties were subject to a detailed technical evaluation of
the building and plant components, with the consequence that the
determination of the cadastral estimate of the property had to
include also the plants and machinery that are part thereof (albeit
not structurally connected to the same).
The Territorial Agency had clarified that "in order to
assess which installation should be included or not in the
cadastral estimate, reference must be made not only to the
criterion of essentiality thereof to the economic purpose of the
real estate unit, but also as to whether the same is fixed, ie.
stable (including over time), in relation to the structural
components of the real estate unit".
This has led to a number of practice and case-law
interpretations, whose prevailing solution has been that the
determination of the cadastral income of the properties should also
include the technical assessment of the machinery and
The Supreme Court of Cassation, with judgment no. 3166 of
February 2015, recalling the provisions contained in the 2015
Stability Law then confirmed that the estimate must comprise all
those machines and plant components that "provide the real
estate unit with operational and income autonomy".
Revisions in the 2016 Stability Law
The 2016 Stability Law has revised the procedures for
determining the cadastral income of real estate units consisting of
multiple elements, some of which are only "functional" to
the production process by providing the following, in summary:
on the one hand, the "direct
estimate" criterion is confirmed for the purposes of
determining the cadastral income of the properties with special
destination under group D
on the other hand it should be noted
that, for the purpose of the calculation of this value, account
must be taken of the "soil and constructions, as well as
the elements structurally connected with them that enhance the
quality and usefulness thereof, within the limits of the ordinary
appreciation" while, account must not be taken (criterion
explained for the first time at the regulatory level), of
"machinery, devices, equipment and other facilities,
functional to the specific production process".
Although it remains uncertain whether the photovoltaic
installations should be regarded as movable or immovable property,
what would appear to be established is the method of cadastral
registration, which must not take account of the
"machinery, devices, equipment and other
Furthermore, regarding photovoltaic installations already
recorded in the cadastral register, the 2016 Stability Law in
paragraph 22 identifies a process through which the holders of the
photovoltaic installations already recorded may obtain a review of
the allocated rental income. Therefore, they will be entitled to
submit "update documents" for the recalculation of the
cadastral income of the properties already recorded in respect of
the criteria referred to in paragraph 21.
Therefore it seems possible to file such "update
documents" taking into account the criteria introduced by the
new law. Where such documents are presented by 15 June 2016, the
recalculation would take effect as from 1 January 2016, and this
would allow a reduction in IMU and TASI taxes already from the
first payment scheduled for June 2016.
The Stability Law also provides for the allocation of certain
sums to be divided among the individual Municipalities, by way of
offsetting the lesser tax revenue resulting from the application of
the new rules.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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