After a new town special area is determined, the authority shall firstly negotiate with the private lands owners to reach agreement on the purchase price of the lands. In case of failure to reach such agreement, the authority may execute zone expropriation, and issue the plan of new town special area within 1 year commencing from expiration of the announcement period of zone expropriation.
Where the above-mentioned agreed price is reached, the land value increment tax may be exempted.
Where the compensation fee for expropriation receivable by a plowland lessee as prescribed in the first paragraph is not determined after this Act takes effect on May 23, 1997, the fee shall not be counted for levying income tax. This is also applicable for the lessees of public-owned plowlands.

All the public-owned lands in a new town special area shall be allocated according to the current value of the announced lands for the authority to perform planning and development.
Where the administrative department of the above-mentioned public-owned lands has buildings and structures on the lands that require removal and reconstruction, the department may request the authority to designate the New Town Development Foundation to handle the removal and reconstruction on a commission basis, and the required expenses shall be paid from the compensation for the lands as well as the buildings and constructions inserted on the lands.

Except compensation shall be offered to the original landownership owners of the lands acquired by means of zone expropriation, the lands within a new town special area, after being acquired and collated, shall be disposed by the authority according to the following provisions:
1.The lands for road, conduit, park, greenbelt, children's play ground, stadium, square, parking slots, and national schools shall be registered without pay as owned by the local municipality or county (city) after the development of new town is finished.
2.The lands for public facilities other than listed in the above subparagraph shall be allocated with compensation for the departments that need lands to use.
3.The lands for public housing and accommodating original residents or other lands approved by the Executive Yuan shall be sold to the organizations that need lands.
4.The lands required for social, cultural, educational, charity or remedy organizations to hold public welfare undertakings, charity remedy undertakings or educational undertakings may be sold or leased with the approval of the Executive Yuan.
5.Other lands usable for construction may be sold or leased through tendering, or used for construction by the competent authority itself.
In case the land area received by an original landownership holder is less than the minimum building ground area, he/she may, within a specified time period, apply for combination or sale of the land, or distribution of the buildings constructed by the authority. Where such application is not submitted within the time limit, compensation in cash will be granted within 30 days commencing from expiration of the time limit according to the agreed price of the original land area before expropriation.
Where the land mentioned in the above paragraph is located in a farm land consolidation, the price shall be calculated based on the original area before consolidation.
The land prince for allocation or sale and the base prince for sale by tendering as mentioned in Subparagraphs 2~5 of the first paragraph shall be assessed based on the total development cost and according to the location, terrain, traffic, road width, public facilities, expected development prospect and other conditions.
The term of lease through tendering as mentioned in Subparagraph5 may not exceed 99 years.
Provisions on sale and lease through tendering as mentioned in Subparagraph 5 shall be prescribed by the central authority.

Where the base of finished community buildings as well as the lands used for registered private schools, social welfare undertakings, charity undertakings and religious organizations within a new town special area do not encumber the plan of the new town special area and the plan of zone expropriation, and have been planned to be used by these buildings or facilities, the original building areas may be reserved upon implementation of zone expropriation and returned to the original landownership holders; the land price difference may be exempted, and other lands shall be put into zone expropriation and distribution. Where it is planned to reserve and distribute the legally prescribed open ground, the land price difference shall be paid according to relevant provisions.
In case the above-mentioned land price difference is not handed in within the specified time limit, the case may be transferred to the court for coercive execution.

For the lands within a new town special area acquired by the authority, the land price tax may be exempted before the lands are not disposed under the first paragraph of Article 8. Where the disposal is not performed in accordance with the implementation schedule prescribed in the prospectus of new town special area, the land value tax shall be levied according to relevant laws from the next day after expiration of the specified time limit.

Where the expropriated lands within the planned range of a new town special area have already been possessed by the ownership holders before approval of the range of new town, inheritance tax or gifts tax may be exempted for transfer caused by succession or presentation between spouses or lineal descents within 5 years commencing from the date of approval to implementation of sectional expropriation and returning of the lands under the Landownership Equalization Act.
The above provision is also applicable before this Act is promulgated and enforced.