What is Act No. 151 / 1997 Coll.?

Act No 151 / 1997 Coll., on the valuation of assets and on the amendment of certain laws (Law on the valuation of assets) — Law on the valuation of assets and on the amendment of certain laws (Law on the valuation of assets).

When it became Act No. 151 / 1997 Coll. effectiveness?

Act No. 151 / 1997 Coll. became effective 01.01.1998.

Is Act No. 151 / 1997 Coll. still valid?

Yes, Act No. 151 / 1997 Coll. is still valid and effective.

How many times was it Act No. 151 / 1997 Coll. amended?

Act No. 151 / 1997 Coll. has 15 time versions of the text.

Act No. 151 / 1997 Coll. - Law on the valuation of assets and on th...

151

THE LAW

of 17 June 1997

on the valuation of assets and on the amendment of certain laws (Law on the valuation of assets)

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

HLAVA PRVNÍ

BASIC PROVISIONS

§ 1

Subject matter

(1) The Act regulates the methods of valuation of cases, rights and other assets (hereinafter referred to as "property") and services for the purposes laid down by specific provisions. 1) Where these provisions refer to a price or special provision for valuation of assets or services for purposes other than sale, this provision shall be understood as such. The law shall also apply for the purposes laid down in the specific provisions referred to in Part Four to Ninth of this Act and, if the competent authority so provides, within the framework of its authorisation or assessment by the parties.

(2) The Act does not apply to price negotiation (2) and does not apply to the valuation of natural resources other than forests.

(3) The provisions of this Law do not apply

(a) where a separate provision provides for a different valuation method, 3)

(b) in the case of the transfer of property under a special regulation.4)

§ 2

Means of valuation of assets and services

(1) Save as otherwise provided in this law, assets and services shall be valued at the usual price.

(2) For the purposes of this Act, the normal price is that which would be obtained at sales of the same or similar assets or at the provision of the same or similar service in normal domestic trade at the valuation date. In doing so, all circumstances affecting the price are considered, but the effects of the exceptional market circumstances, the personal circumstances of the seller or buyer, and the effect of special popularity, are not reflected in the price. Exceptional market circumstances include, for example, the state of distress of the seller or buyer, the consequences of natural or other calamities. Personal relationships are mainly property, family or other personal relationships between the seller and the buyer. Special popularity means the special value attached to the property or service resulting from a personal relationship with them. The usual price shall represent the value of the property or service and shall be determined from the agreed prices by comparison.

(3) In justified cases where the normal price cannot be determined, the assets and the service shall be valued at market value, unless otherwise provided in the specific legislation. All circumstances affecting the market value are considered. The reasons for not determining the normal price must be stated in the valuation.

(4) For the purposes of this Act, market value means the estimated amount at which the assets or services should be exchanged at the valuation date between the willing buyer and the willing seller, in the course of trade carried out in accordance with the principle of market separation, after appropriate marketing, where each party acted in an informed, prudent and not in distress. For the purposes of this Act, the principle of market separation means that exchange participants are persons who have no special relationship with each other and act independently of each other.

(5) The determination of the normal price and market value and the procedure for that determination must be apparent from the valuation, their use, including the data used, must be justified and correspond to the type of subject of the valuation, the purpose of the valuation and the availability of objective data available for the valuation. The decree sets out the details of the normal price and market value.

(6) Exceptional price means the price to which the exceptional market circumstances, the personal circumstances of the seller or buyer have been reflected or the effect of special popularity.

(7) The price determined under this Act other than the normal price, the exceptional price or the market value is the price determined.

(8) The service is the provision of activities or tangible results of activities.

(9) Other means of valuation provided for by this law or on the basis thereof are:

(a) a cost method which is based on the costs that would have to be incurred for the acquisition of the subject of the valuation at the valuation point and on its condition at the valuation date;

(b) the method of return which is based on the return on the subject of the valuation actually achieved or on the yield that can normally be obtained from the subject of the valuation under the conditions and the capitalisation of that yield (interest rate);

(c) a comparison method based on a comparison of the subject matter of the valuation with the same or similar object and the price agreed upon on its sale; is also a valuation of a case derived from the price of another functionally related item,

(d) valuation by nominal value based on the amount to which the subject of the valuation is expressed or which is otherwise apparent;

(e) valuation by book value based on valuation methods established under accounting rules;

(f) the exchange-rate valuation based on the price of the subject of the valuation recorded during the specified period on the market;

(g) valuation of the negotiated price, which is the price of the subject of the valuation agreed at the time of its sale or, where applicable, the price derived from the negotiated prices.

HLAVA DRUHÁ

_

Díl první

Construction

§ 3

Construction breakdown

(1) For valuation purposes, the construction is subdivided into:

(a) land buildings which are:

1. buildings which are the buildings of a space-concentrated and externally closed by perimeter walls and roof structures with one or more enclosed utility spaces;

2. units,

3. outdoor treatment,

(b) civil engineering and special ground construction, such as transport, water, energy and water distribution, sewerage, towers, masts, chimneys, areas and landscapes, wells and other buildings of a special nature;

(c) water tanks and ponds;

(d) other structures.

The breakdown of buildings into individual species is laid down in the Decree.

(2) For valuation purposes, the construction shall be assessed according to the purpose of use. In the event of a non-compliance between the purpose of the use of the construction site referred to in the decision authorising the project, the approval decision or the approval of the approval procedure or in the building permit or in the public contract replacing the building permit or in the announcement or notification of the construction site builder to the construction office or in the approval of the building office or in the certificate of the authorised inspector and the actual use of the construction site shall be based on the actual use of the construction site. If the evidence of the purpose for which the construction was authorised is not preserved, or if there is a discrepancy between the state of the property register (5) and the actual state, the construction is intended for the purpose for which it is equipped with its technical structure. If the construction equipment indicates several purposes, it shall be considered to be intended for the purpose for which it is used without defects.

Valuation of construction

§ 4

(1) Save as otherwise provided in this Act, the construction or parts thereof (7) (hereinafter referred to as "construction") is valued in a cost, revenue or comparison manner or by a combination thereof, the use of which is provided for in the Decree for each type of construction.

(2) The construction is valued on the basis of the purpose of its use, irrespective of whether it is a immovable or movable item or whether it is part of the property or right of construction.

(3) If the construction is not a separate item, its price shall be added to the price of the immovable item in which it is part.

(4) A product which functions as a building is valued as another building.

§ 5

(1) If the construction is valued in a cost-effective manner, it is based on:

(a) the basic prices per unit of measurement of the construction or the cost of purchasing the construction; for construction intended for disposal, the evaluation of the applicable material shall be based on its removal, reduced by the cost of disposal;

(b) taking into account the nature, size of the construction, its equipment, its location and its marketability, the water tank and the pond as well as their function;

(c) technical or moral wear of the construction,

(d) taking into account the price of the machine or other technological equipment, unless a reservation is entered in the property register that the machine is not the ownership of the owner of the immovable property.

(2) The basic prices and the manner in which they are adjusted in accordance with paragraph 1 for each type of construction, the procedures for measuring and calculating the size of the buildings and the valuation procedures, including the methods for detecting and applying technical or moral wear, are laid down in the Decree. The specified prices and procedures shall also take into account the effects on the level and relation of market prices of buildings.

§ 6

If the construction is valued in a profitable way, the decree sets out the method of calculating the price, the method of determining the yield and the level of capitalisation for the period in question.

§ 7

If the construction is valued in a comparative manner, the decree sets out the aspects to be taken into account in the comparison.

§ 8

Valuation of units

(1) The unit which is an apartment or which includes an apartment is valued, including the share in the common parts of the property, even if it is located outside the house, and the share in the real estate items constituting the accessories of the house intended for joint use.

(2) A unit which is a non-residential space or which includes a non-residential space is valued including a share in the common parts of the real estate, even if it is located outside the house, and a share in the real estate items constituting the accessories of the house intended for joint use; the non-residential space is not an apartment or common part of the house.

(3) The unit price shall be determined in a cost or comparative manner. The size of the share in the common parts of the real estate belonging to the unit shall be recorded from the public list. The method of valuation shall be determined by the decree following the type and purpose of use of the building in which the unit is located.

(4) The price of real estate accessories which are not part of the real estate, such as outdoor treatment, wells and secondary buildings serving exclusively joint use, is to be included in the value of the unit, apartment or non-residential space.

(5) The floor area of the unit, which is an apartment or a non-residential space, or which includes an apartment or a non-residential space, shall be the sum of all surface areas of the floors of each room or room in a space-separated part of the house and of the spaces used exclusively with them. The procedure for determining the area area areas shall be laid down in the Order.

(6) Land which is a common part of the unit should be valued separately and its price added to the unit price.

Díl druhý

Land

§ 9

Land breakdown

(1) For valuation purposes, land shall be subdivided into:

(a) building land;

(b) agricultural parcels registered as arable land, hop, vineyard, garden, fruit orchard and permanent grassland;

(c) forest land which is forest land registered in the cadastral of real estate and forested non-forest land;

(d) land registered in the land register as water land;

(e) other parcels not listed in points (a) to (d).

(2) Construction land is further subdivided into:

(a) land not built up;

1. registered in the cadastral of real estate in the type of plot and courtyard,

2. registered in the land register in each type of land which has been issued by a decision authorising the project, by a decision on the zoning, by a common authorisation to place and authorise the construction, by a regulatory plan, by a public contract replacing the zoning decision or by a zoning agreement,

3. registered in the property register in the type of garden parcel or other area, in a single functional unit. A single functional total shall mean land in the type of garden parcel or other areas which continuously follow the land registered in the land register in the type of land built and the courtyard with construction, with the common purpose of their use. In a single functional unit, more land of the type of land may include a built-up area and a courtyard,

4. registered in the real estate register with the right of construction,

(b) land built up;

1. registered in the cadastral of real estate in the type of plot and courtyard,

2. registered in the cadastral of real estate in the type of land other areas which are already built,

(c) areas of land actually built up by construction regardless of the registered status in the real estate register.

(3) A further breakdown of the land for valuation purposes in relation to the type of land and its purpose of use is provided for in the Decree.

(4) A building plot for valuation purposes is not a plot which is built only by underground or above ground lines, including their accessories, underground structures which do not reach the ground level, underground parts and accessories of structures for transport and water management not forming part of the buildings. Building land for valuation purposes is not also a plot built by buildings without foundations, wells, fences, supporting walls, monuments, statues, etc.

(5) For valuation purposes, land shall be assessed according to the condition in the property register. 5) In the event of a discrepancy between the situation in the cadastral and the actual situation, the valuation shall be based on the actual situation.

§ 10

Valuation of building land

(1) The building plot is valued at a multiple of the area of the plot and the price per m2 shown in the price map issued by the municipality. If the building plot is not valued on a price map or if the building plot cannot measure the price from the price map, it shall be valued by multiplying the area of the plot and the base price per m2 adjusted by the impact of the position and other effects, in particular, on the use of the land for the construction or, where appropriate, the prices determined by another valuation method pursuant to § 2 of the Decree.

(2) The price map of the building plot is a graphical representation of the building plot on the territory of the municipality or part thereof at a scale of 1: 5000 or, where appropriate, on a more detailed scale, with marked prices. Construction land in the price map shall be valued at the prices actually agreed in the purchase contracts.

(3) If the price map is not available or cannot be used in the municipality for processing the agreed price map referred to in paragraph 2, since it no longer corresponds to the level of the agreed price of comparable land at the date of drawing up the price map, the prices shall be determined on the basis of comparison with the agreed prices of similar land in the municipality or other comparable municipalities, the comparability of the municipality being assessed by population, location of the municipality, economic importance of the municipality, transport services of the municipality, technical infrastructure and amenities in the municipality. The comparison is based on the same purpose of use, similar location in the municipality and on the same construction equipment of the plot. The information on the procedure and the comparison shall be provided by the municipality in the text part of the price map, which shall include, where appropriate, additional explanatory notes.

(4) Where the price of a building plot cannot be determined in accordance with paragraph 2 or 3, the price of that plot shall not be entered in the price map and the land shall be valued in accordance with paragraph 1, second sentence.

(5) The decree sets out the documentation for the processing of the price map and the valuation procedure for construction land which is not valued on the price map or which cannot be valued on the price map.

(6) The municipality shall submit a draft price map of the construction land or its amendment before issuing it to the Ministry of Finance for comments.

(7) At the end of each calendar year, the generally binding municipal decree complements the price maps with new prices for construction land. Where the agreed price, use or construction equipment of the land is changed, the new price of the land shall be determined in accordance with paragraph 2 or 3. The procedure laid down in paragraph 6 shall apply.

(8) The municipality will allow free access to the price map of the land managed by the municipality to anyone who requests it.

(9) The price of the building or, where appropriate, of the buildings forming part of it shall be added to the price of the land determined in accordance with paragraph 1. If the building which is part of the plot is situated on several parcels, do not start with the price of the plot on which it is transferred. The procedure for determining the area of immovable property is laid down in the Decree.

(10) The price of permanent crops shall be added to the price of the land determined in accordance with paragraph 1.

§ 11

Valuation of agricultural land

(1) The agricultural parcel is valued at the price determined in a yield manner according to the soil-protected organic units.

(2) The basic prices of agricultural parcels and their adjustment to reflect the impact of the location and other effects on the usefulness of land for agricultural production, such as natural or technical barriers and the declaration of specially protected areas, 11) provides for a decree.

§ 12

Valuation of forest land

(1) Forestry land (12) is valued in terms of yield and comparison according to the predominant set of forest types.

(2) The Decree provides for basic prices and adjustments for forest land in the forest category (13) and other effects on forest land usability.

§ 13

Valuation of land on water and other land

Water land and other land shall be valued at the prices laid down in the Order.

Díl třetí

Permanent crops

§ 14

Breakdown of permanent crops

For valuation purposes under this Act, permanent crops are subdivided into:

(a) forest crops, 14)

(b) fruit trees;

(c) rapidly growing timber;

(d) wine and hops,

(e) ornamental plants.

§ 15

Valuation of forest land

(1) Forestry is valued in a cost and yield manner. It is based on groups of forest trees according to their representation in the forest, age, creditworthiness, washing and lineage.

(2) The procedure for determining the basic prices of forest crops and their adjustment, reflecting the category of forest, the economic shape of the forest, the degree of crop damage, the assortment of the crops and other effects on wood production, is laid down in the Decree.

(3) The valuation shall be based on the forest data contained in a binding material processed under a specific regulation. 15) If this document is not processed or the particulars contained therein do not correspond to the facts, the necessary information shall be established as appropriate.

§ 16

Valuation of fruit trees, fast growing trees, grapes and hops and ornamental plants

(1) Fruit trees, rapidly growing trees, vines and hop vines are valued in terms of yield according to the type of wood, their age, the growing shape or the way in which they are grown. The prices of wine and hop grapes include the prices of the vineyard and hop plants.

(2) Ornamental plants are valued in a cost-effective manner.

(3) The basic prices referred to in paragraphs 1 and 2 and their adjustment, in particular the health status of the crops, the degree of damage, their economic life and the prices of the vineyard and hop plants, shall be laid down in the Decree.

Díl čtvrtý

Rights to immovable property

§ 16a

Valuation of construction law

(1) The right of construction shall be valued in a profit-making manner on the basis of annual benefits, taking into account the period of continued use of the right, which shall elapse between the year of valuation and the year of termination of the right.

(2) An annual benefit shall be established for the evaluation of the right of construction with an unestablished construction that complies with the right of construction on the land encumbered by that law.

(3) For the evaluation of the right of construction with established construction which satisfies the right of construction, the annual benefit shall be determined on the basis of the determined price of the encumbered land and the determined price of the building which complies with the right of construction and the compensation for the termination of the right of construction.

(4) The decree shall determine the method of calculating the price of the right of construction, taking into account the number of years of continued duration of the right of construction, the determination of the annual benefit and the amount of compensation when the right of construction is terminated.

(5) The valuation referred to in paragraphs 2 and 3 shall not apply if the price of the construction right is determined by the decision of the competent authority.

§ 16b

Valuation of material burdens

(1) The burden in kind is valued on the basis of annual benefit, taking into account the duration or fixed amount of the burden, unless it is possible to determine the annual benefit from the burden in kind.

(2) For the service, the rate of limitation on the use of the property shall be taken into account in the annual benefit.

(3) In the case of a real burden, the annual benefit takes into account the benefit of the beneficiary.

(4) An unlimited real burden or right of redeemable service shall be valued at the amount of the compensation specified in the contract. If only the terms of the purchase of the real burden or the cancellation of the service are in the contract, the compensation shall be calculated in accordance with those conditions at the date of the valuation.

(5) The manner in which material burdens are to be broken down according to the calculation of their valuation, the procedure for calculating the cost of material burdens, the method of determining the annual benefit and the rate of capitalisation by type of material burden and the immovable property burden and the amount of the fixed amount shall be laid down by the Order.

(6) The valuation referred to in paragraphs 2 to 4 shall not apply if the price of the burden in kind is determined by a decision of the competent authority.

§ 16c

Valuation of real estate defects

(1) Where the real estate is burdened by a material burden or by a right established otherwise than as a right corresponding to a material burden ("defect"), the price of the real estate is reduced by the value of the real estate price. The defect shall be valued on the basis of the amount of the price of the property owner's annual damage associated with that burden, taking into account its duration.

(2) For the purposes of this Act, a defect shall not be regarded as:

(a) a right which does not substantially restrict the right of ownership, use or benefit to the immovable property and does not have a significant influence on its price;

(b) lien;

(c) the right of detention;

(d) hire,

(e) pacht,

(f) the right of construction.

(3) The amount of the annual damage shall be determined as the difference between the amount of the annual benefit resulting from the real estate without the burden of the defect and the amount of the annual benefit from the real estate with the burden of the defect.

(4) The procedure laid down in Article 16b shall apply mutatis mutandis for determining the annual benefit of the owner of the immovable property and the method of calculating it. The procedure for the valuation of the defect, the determination of the capitalisation rate by type of defect and the encumbered immovable property is laid down in the Decree.

HLAVA TŘETÍ

PROPERTY RIGHTS

§ 17

Valuation of property rights arising from industrial rights and rights to the labelling and production of technical knowledge, certain property rights related to copyright and database procuring rights

(1) Property rights, which are the content of industrial rights (16) and the rights of labelling (17), and of production technical and commercial knowledge (know.how), property rights which are the content of copyright rights, with the exception of performers' rights, and property rights of the procuring entity of the database, 17a) are valued in a profit-making manner, as the sum of discounted future annual net proceeds resulting from the use of those rights from the valuation date, with the possibility of taking into account the rate of cessation. The method of discounting shall be laid down in the Decree.

(2) The annual net profit of use shall be established:

(a) the right-to-use contracts (for example, licence agreements) in force on the valuation date;

(b) according to the facts for the last calendar year of use in the five years preceding the valuation year, unless it can be ascertained in accordance with (a).

(3) Number of years of use

(a) be established from contracts, but not more than the amounts referred to in (b), (c) or (d);

(b) shall be five years in the case of industrial rights, technical and commercial knowledge and ten years in the case of labelling rights where the number of years referred to in (a) cannot be determined;

(c) for relevant copyright rights, the number of years remaining until the end of the duration of those rights under the copyright law, where the number of years referred to in (a) cannot be determined; and

(d) for the rights of the procuring entity of the database, the number of years remaining until the end of the 15-year period of those rights, where the number of years referred to in (a) cannot be determined.

(4) If, for various reasons, the right, including that not used, cannot be assessed in accordance with paragraphs 1 to 3, or if the price established under paragraphs 1 to 3 is disproportionately higher or lower than the normal price, the right shall be valued at the normal price.

(5) The property rights of performers as non-transferable rights are not appreciated.

HLAVA ČTVRTÁ

PRICE PAPERS

§ 19

Valuation of securities traded on a regulated market, a foreign regulated market or a foreign market similar to a regulated market

(1) Securities

(a) domestic or foreign, traded on a regulated market19) shall be valued at the final rate declared on a regulated market on the day of the valuation; and

1. the security on the regulated market has not been traded on the day of valuation, it shall be valued at the last final rate declared on the regulated market in the period preceding 30 days before the valuation date;

2. the security on the regulated market was not traded on the day of the valuation and was not traded on that market even during the period preceding the 30 days preceding the valuation date, it will be valued at the lowest achieved by the final rate declared during the same period at another transfer point in the Czech Republic,

(b) domestic or foreign, traded only on a foreign regulated market20) or a foreign market similar to a regulated market, shall be valued if the security:

1. trading on a foreign regulated market or foreign market similar to a regulated market in the State of the issuer's registered office, the final rate declared on that market at the valuation date and, if not available, shall be valued at the last final rate declared on that market during the period referred to in point (a);

2. does not trade on a foreign regulated market or foreign market similar to a regulated market in the State of the issuer's registered office, the last final rate declared on a foreign regulated market or a foreign market similar to a regulated market during the period referred to in point (a) in the State where the security was admitted to trading on the relevant market; where a market rate has been declared on the same day in several States, it shall be valued at the lowest announced final rate.

(2) In accordance with paragraph 1 (b) (2), priority shall be given to the exchange rate established on the markets designated by the measures of the Ministry of Finance in agreement with the Czech National Bank. The foreign currency security exchange rate is translated into the foreign exchange market rate of the Czech National Bank at the valuation date. For the conversion of currencies that are not included in the Czech National Bank's exchange sheet, the US dollar exchange rate for this currency shall be the one declared by the central bank of the State with that currency.

(3) If the security rate referred to in paragraph 1 has not been declared within 30 days of the valuation date on any market, the security shall be valued in accordance with Section 20.

Citation	Act No 151 / 1997 Coll., on the valuation of assets and on the amendment of certain laws (Law on the valuation of assets)
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	10.07.1997
Effective from	01.01.1998
Effective until	-
Status	Valid

Act No. 151 / 1997 Coll.

Law on the valuation of assets and on the amendment of certain laws (Law on the valuation of assets)

Contents