Land and improvements thereon shall be taxed according to the provisions of this Act, unless otherwise exempted from taxation by Act.

Land tax shall be of two kinds: the land value tax and the land value increment tax.

The value of land and that of improvements thereon shall be separately assessed.

Land tax shall be a local tax.

No tax or surtax under whatever name shall be imposed on land and improvements thereon except in accordance with the provisions of this Act. But to meet the expenses required for the construction of roads, embankments, dikes, ditches, sewers, or other engineering works on ground or in water for the improvement of land, a “construction benefit charge” may be levied according to Act.

The value of land declared by its owner according to this Act shall be the statutory value of such land.

The declaration of the value of land shall be carried out by the Special Municipal or County (City) Land Administration Agency according to the following procedure:
(1)Investigation and assessment of the standard values of lands.
(2)Declaration of the values of lands by their owners.
(3)Compilation of land value rolls.

To serve as the basis for the assessment of the standard land value, an investigation by sampling shall be made of the market values or income values of land prevailing during the last two years. The number of plots of land to be investigated by sampling may vary with the number of categories of land involved and with the greater or lesser differences in the values of the plots under investigation.

On the basis of the results obtained from the investigation made according to the provisions of the preceding Article, different grades of land values shall be fixed by grouping together plots of land whose values approximate to one another and whose location is mutually adjacent or which belong to the same category; and under each of these grades the average or the median of the market values or income values of those plots of land which are investigated by sampling shall be taken as the average land value of that grade.

The average land value of each land value grade shall be publicly announced as the standard land value of that grade by the competent Special Municipal or County (City) Government upon the request of the competent Special Municipal or County (City) Land Administration Agency.

The public announcement of the standard land values shall be made district by district, before the general registration of land begins.

If any landowner considers the standard land value to be incorrectly assessed, he may, with the concurrence of the majority of the owners of lands of the same land value grade in the same district, raise objections thereto with the competent Special Municipal or County (City) Government within thirty days after the announcement of the said standard land value.
On receiving the objections raised according to the provisions of the preceding paragraph, the Special Municipal or County (City) Government shall immediately refer them to the Committee on Standard Land Values for consideration.

Rules governing the organization of the Committee on Standard Land Values shall be formulated by the Central Land Administration.
The Committee referred to in the preceding paragraph shall include members representing the local assembly.

On applying for the registration of landownership, the landowner shall simultaneously declare the value of his land, which may not be more than 20 per cent either above or below the standard land value.

If any landowner considers the standard land value to be too high and declines to declare the value of his land according to the provisions of the preceding Article, he may request the competent Special Municipal or County (City) Government to purchase his land at the said standard land value.

If, on applying for the registration of landownership, any landowner fails to declare the value of his land simultaneously, the standard land value shall be taken as the statutory value of his land.

When the declaration of land values is completed in any Special Municipality or County (City), land value rolls and general registers of landowners shall be compiled and transmitted to the competent financial authorities of the Special Municipality or County (City).

The value of land may be re-assessed after the lapse of five full years since its declaration, or after the lapse of one full year since its declaration if the land value fluctuates by more than 50 per cent either above or below the standard land value; and the provisions of Articles 150 to 152 inclusive and of Article 154 to 156 inclusive shall apply in such re-assessment.

The value of constructional improvements shall be assessed by the competent Special Municipal or County (City) Land Administration Agency at the time when the value of land is assessed.

The value of constructional improvements shall be assessed on the basis of the expenses required for the construction, at the time of assessment, of the same improvements, minus the depreciation caused by the lapse of time.

In the re-assessment of the value of the original constructional improvements, additional improvements made thereto shall be considered as part of the original improvements, but repairs made for the maintenance of the original improvements in a sound condition shall not be regarded as additional improvements.

The assessed value of improvements shall be submitted by the Special Municipal or County (City) Land Administration Agency to the Committee on Standard Land Values for confirmation. The values confirmed by the said Committee shall be reported to the competent Special Municipal or County (City) Government to be publicly announced as the statutory values of such improvements, and the owners of such improvements shall be individually notified in writing of the respective statutory values by the Special Municipal or County (City) Land Administration Agency.

If any recipient of the notification made according to the preceding Article takes exception to the value confirmed, he may, within thirty days after the receipt of such notification, request the Committee on Standard Land Values to make a re-assessment.

The value of constructional improvements may be re-assessed when the value of land is re-assessed.

The land value tax shall be levied once every year on the basis of the statutory land value. Payment thereof may, if necessary, be made in two installments.

The land value tax shall be levied according to a progressive scale on the basis of the statutory land value.

The basic rate of the land value tax shall be 1.5 per cent of the statutory land value.

Where the total value of all the lands owned by any landowner does not exceed the initial point of land value subject to progressive rates, the land value tax on his lands shall be levied according to the basic rate prescribed in the preceding Article. Where the total value of all the lands owned by any landowner exceeds the initial point of land value subject to progressive rates, the land value tax on that part of the total value of his lands which exceeds the said initial point shall be levied according to the following progressive rates:
(1)Where the total land value exceeds the said initial point by no more than 500 per cent, a rate of 0.2 per cent in addition to the basic rate shall be levied on that part of the total land value which exceeds the initial point.
(2)Where the total land value exceeds the said initial point by no more than 1,000 per cent, another rate of 0.3 per cent in addition to the rates prescribed in the preceding section shall be levied on that part of the total land value which exceeds the initial point by more than 500 per cent.
(3)Where the total land value exceeds the said initial point by no more than 1,500 per cent, a still another rate of 0.5 per cent in addition to the rates prescribed in the preceding section shall be levied on that part of the total land value which exceeds the initial point by more than 1,000 per cent. Thereafter, another rate of 0.5 per cent in addition to all the preceding rates shall be levied on every additional 500 per cent increase in the total land value, until the total cumulative rate has reached the maximum limit of 5 per cent.

The initial point of land value subject to progressive rates referred to in the preceding Article shall be fixed by the Special Municipal or County (City) Government, with due consideration of the area of land necessary for the owner’s dwelling or cultivation and in the light of land values and local economic conditions; and the initial point of land value so fixed shall be submitted to the Executive Yuan for approval.

The land value tax shall be levied on the landowner. In the case of any land subject to dien, the said tax shall be paid by the dien-holder.

Where a private vacant land is not duly used after the expiration of the time limit within which it is required to be duly used, a vacant land tax shall be imposed on the said land in addition to the land value tax, until it is duly used according to the Act.
The vacant land tax referred to in the preceding paragraph shall not be less than three times, or more than ten times, the land value tax leviable on the said land.

Where a private uncultivated land is not duly used after the expiration of the time within which it is required to be duly used, an uncultivated land tax shall be imposed on the said land in addition to the land value tax, until it is duly used according to law.
The uncultivated land tax referred to in the preceding paragraph shall not be less than the amount of, or more than three times, the land value tax leviable on the said land.

Cancelled.

The land value increment tax shall be levied on the basis of the net increment of the value of land, when the ownership thereof is transferred, or after the lapse of ten full years though the ownership thereof has not been transferred.
The period of ten full years referred to in the preceding paragraph shall begin from the date when the value of land is assessed for the first time according to Act.

In areas where the construction works referred to in Article 147 are executed, the land value increment tax shall be levied after the lapse of five full years since the completion of such work.

The gross increment of the value of land shall be determined according to the following provisions:
(1)Where any land which has undergone no transfer since the assessment of its value is transferred by a sale without the right of redemption, the amount by which its present sales price exceeds its value originally assessed shall be taken as the gross increment of the value of such land.
(2)Where any land which has undergone no transfer since the assessment of its value is transferred through inheritance or donation, the amount by which its value assessed at the time of the transfer exceeds its value originally assessed shall be taken as the gross increment of the value of such land.
(3)Where any land which has undergone transfers since the assessment of its value is transferred again, the amount by which its value at the present transfer exceeds its value at the penultimate transfer shall be taken as the gross increment of the value of such land.

“The value of land originally assessed” and “the value of land at the penultimate transfer” referred to in the preceding Article shall be called the original value of land.
In case a violent fluctuation of commodity prices occurs, the original value of land mentioned in the preceding paragraph shall be adjusted according to the local price index by the Special Municipal or County (City) financial authorities and with the concurrence of the local assembly.

The gross increment of the value of any land minus the amount of tax remission shall be the net increment of the value of such land.

The land value increment tax shall be levied at the following rates:
(1)Where the net increment of the value of any land is no more than 100 per cent of the original value of such land, the rate shall be 20 per cent of the net increment.
(2)Where the net increment of the value of any land is no more than 200 per cent of the original value of such land, the rate shall be 40 per cent of that part of the net increment which exceeds the original value by more than 100 per cent, aside from the rate prescribed in the preceding section.
(3)Where the net increment of the value of any land is no more than 300 per cent of the original value of such land, the rate shall be 60 per cent of that part of the net increment which exceeds the original value by more than 200 per cent, aside from the rates prescribed in the preceding section.
(4)Where the net increment of the value of any land is over 300 per cent of the original value of such land, the rate shall be 80 per cent of that part of the net increment which exceeds the original value by more than 300 per cent, aside from the rates prescribed in the preceding section.

Where the ownership of any land is transferred by a sale without the right of redemption, the land value increment tax shall be levied on the seller. Where the ownership of any land is transferred through inheritance or donation, the said tax shall be levied on the heir or donee, as the case may be.

Where any land has undergone no transfer after the lapse of ten full years since the assessment of its value, or after the lapse of five years since the completion of the construction works which have been carried on in the area where the said land is located, the land value increment tax shall be levied on the landowner.
If the land referred to in the preceding paragraph is subject to dien, the land value increment tax shall be levied on the dien-holder, but the dien-obligor shall refund the payment thereof without interest to the dien-holder when the dien- obligor redeems the land.

In computing the net increment of the land value, the capital expenses incurred by the landowner for the improvement of his land and the “construction benefit charge” paid by him shall, if any, be deducted from the gross increment of the value of his land.

Constructional improvements may be taxed annually according to their assessed values, and the maximum tax rate shall not exceed one per cent thereof.

The tax on constructional improvements shall be levied simultaneously with the land value tax, and the provisions of Article 172 shall apply mutatis mutandis.

Where constructional improvements are used as the owner’s dwelling house, they shall be exempted from taxation.

Agricultural improvements shall not be subject to taxation.

In localities where the value of land is generally less than 500 (silver) dollars per mow , all constructional improvements shall be exempted from taxation.

The entire tax on improvements on land shall be a local tax.

Public lands and public constructional improvements shall be exempted from the land tax and the tax on improvements, unless they are used by government enterprises or are not used for public purposes.

The tax on private lands used for any one of the following purposes may be reduced or remitted upon approval by the Executive Yuan of a joint request made by the Ministry of Finance and the Central Land Administration.
(1)Premises for schools and academic institutions.
(2)Parks and public athletic grounds.
(3)Experimental stations for agriculture, forestry, and animal husbandry.
(4)Forest land.
(5)Premises for public hospitals.
(6)Public cemeteries.
(7)Other lands used by non-profit undertakings for the promotion of public welfare.

On the occurrence of a calamity in any locality or for the purpose of making social and economic readjustments, the Ministry of Finance and the Central Land Administration may jointly request the Executive Yuan to approve the remission or reduction of the land tax in the affected area for the duration of the said calamity or readjustment.

Any land which is reserved for expropriation or whose use is restricted by Act shall be exempted from taxation, unless the said land can be used for its original purpose during the period in which it is reserved for expropriation.

Any land which is not utilizable owing to its physical condition or for technical reasons, or which is in process of being reclaimed, shall be exempted from the land value tax upon approval by the Executive Yuan of a joint request made by the Ministry of Finance and the Central Land Administration.

No land value increment tax shall be levied on any land when the transfer of its ownership is necessitated by expropriation or land consolidation.

No land value increment tax shall be levied on any lands owned by a farmer which are used for his own cultivation and residence, if they remain untransferred after the lapse of ten full years since the assessment of their value.

No land value increment tax shall be levied on any farmland, when its value appreciates as a result of the application of labor and capital by the farmer.

Any land on which tax has been reduced or remitted shall be taxed as usual, when the cause or circumstance which justifies such reduction or remission changes or disappears.

If any land value tax is not paid when due, a fine of no more than 2 per cent of the amount overdue shall be imposed for every month of delinquency, beginning from the date when it is overdue, and, for this purpose, a fraction of a month shall be considered as a full month.

When the cumulative amount of the land value tax overdue is equal to the amount of the said tax leviable in two years, the competent Special Municipal or County (City) financial authorities may notify the Special Municipal or County (City) Land Administration Agency to turn over to the judicial authorities for sale by auction both the land on which the tax is overdue and a portion or the whole of the improvements thereon. The proceeds therefrom shall be used to offset the amount of the tax overdue and the surplus, if any, shall be handed back to the delinquent taxpayer.

In case any land is to be sold by auction according to the provisions of the preceding Article, the judicial authorities shall serve a written notice thereof to the owner of the said land thirty days before the auction.

If, on receipt of the notice referred to in the preceding Article, the landowner furnishes adequate security for the payment of the tax overdue, the judicial authorities may order a postponement of the auction.
The period of the postponement referred to in the preceding paragraph, shall not be longer than one year.

Where the land on which the land value tax is overdue yields incomes, the competent Special Municipal or County (City) financial authorities may notify the Special Municipal or County (City) Land Administration Agency to collect such incomes for the purpose of offsetting the amount of the tax overdue, instead of selling the land by auction.
The collection of incomes referred to in the preceding paragraph shall be effected only when the cumulative amount of the tax overdue is equal to the mount of the said tax leviable in one year.
The amount of the incomes collected according to the previsions of Paragraph one shall be limited to such a sum as is enough to offset the amount of the tax overdue.

If any land value increment tax is not duly paid according to Act, a fine shall be imposed according to the provisions of Article 200.

When any land value increment tax is overdue for one full year, the competent Special Municipal or County (City) financial authorities may notify the Special Municipal or County (City) Land Administration Agency to turn over the land and a portion or the whole of the improvements thereon to the judicial authorities for sale by auction. The proceeds therefrom shall be used to offset the amount of the tax overdue and the surplus, if any, shall be handed back to the delinquent taxpayer.
The provisions of Articles 202 and 203 shall apply to the auction referred to in the preceding paragraph.

The provisions of various Articles in this Chapter concerning the land value tax overdue, shall mutatis Mutandis, apply to any tax overdue on construction improvements.