(Taichung News) Miss Xu called to inquire about a piece of land she recently inherited, which is designated for public facilities in accordance with the Urban Planning Laws. There is a building on the land used as a residence, but it may be demolished due to expropriation. She wants to know if she can apply for an exemption from land value tax.
The Local Tax Bureau of the Taichung City Government noted that for land reserved for public facilities that has not yet been expropriated or purchased, tax benefits are provided considering the usage restrictions of the land. Before further actions are taken, if the land is still being used for buildings, the land value tax is levied at a rate of 6‰. If the land meets the criteria for self-use residential land and passes the application review, the tax rate can be reduced to 2‰. If the land is not being used at all and is isolated from other used land, an exemption from land value tax can be applied for. If the land is used for agricultural purposes, an application can be made to levy agricultural land tax (currently suspended).
The Local Tax Bureau reminds that since Miss Xu's land reserved for public facilities is still being used for buildings, it is taxed at a rate of 6‰. If the land meets the criteria for self-use residential land, she should apply to the bureau at least 40 days before the annual land value tax is levied (i.e., before September 22). Upon approval, the tax rate can be reduced to 2‰ for that year. If the application is submitted late, the reduced rate will only apply from the following year.
If you have other questions about land value tax, feel free to call (04) 22585000, press 1 to connect to the A++ Station, or call the toll-free service number 0800-000321, where dedicated personnel will be available to help.