Draft of the Law on taxes on property, prepared by the experts of the International County Management Association (ICMA), the tax in urban area would make 0.3 – 0.6% of the total worth of the property. The law includes the provision where tax for property in rural area would be between 0.25 and 0.5% of the total worth. Each of Montenegrin municipalities would previously have to classify their territory and if it were not approved, the tax of 0.5% would be applied. The draft of the Law that was presented today in hotel “Crna Gora” in Podgorica, is in line with the principles of the European Charter shall enter into force on January 1, 2002 and shall be applied in all of Montenegrin municipalities. The Law includes the calculation of taxes on possessing, sale and other forms of transfer of the land. This tax would be paid by each person of collective and individual responsibility that owns, claims, possesses or controls. According to this Law, the owner of the property has the right to sell it and thus gain profit in line with restrictions imposed by the contract on lease or rent, agreed by both sides. When the right to use property or profit from property is shared by the owners or persons entitled, the co-proprietors must decide by themselves through a contract or another agreement, who shall pay the tax on property. If they do not agree till beginning of the fiscal year, the revenue authorities would decide on the tax –payer. Market value of the property would have to be estimated on every three years, and it would be established by official estimations issued by municipal authorities. Municipal authorities would request individual estimations of the proprietors or possessor of the right until overall system of official estimation within the municipality is established. Owner of the property can request from municipal authorities a new estimation of the property value, if damage was made and the owner was not answerable for it. From January 1 2002 till January 1, 2003, the Directorate of public revenue would have to establish methodology for establishing market value. The same period of time would be spent for defining of competences of revenue authorities. Directorate for real estate must review the standards of estimation passed by municipal authorities. Ministry of finance and Association of municipalities would first have to select at least two municipalities for experimental implementation of standards and procedures for estimation until June 30, 2002. In all other municipalities the implementation of standards would begin on January 1, 2004. Until February 1, 2002, Directorate for real estate would have to establish the average price of the square meter of constructed building and land, for all municipalities in the Republic. The draft of the Law prepared by ICMA includes that in April, revenue authorities would establish standards for estimation of the property of rural and urban areas in municipalities. Two months later, municipal authorities would make forms for tax applications that would be used for individual estimations and that would have to be submitted by taxpayers until the end of August.