Taipei, Taiwan’s Capital, to Recover More Ground Rent
|December 21, 2013||Posted by Staff under Geonomics In Action|
Local governments have significantly raised the current value of land in recent years as part of efforts to narrow the gap between the government-designated cost and market value of real estate.
The move will increase the tax burden borne by home sellers. From next year, home sellers will have to pay higher taxes for land value increases when closing deals.
City and county governments set a current value for land in their respective administrations on a yearly basis.
The city government’s designated land value lags far behind market prices, thereby easing holding costs and tax burdens for property speculators.
The rates of increase are lagging behind the pace at which home prices are rising, with Taoyuan seeing housing prices grow 73 percent during the same period.
Ed. Notes: Even where people are used to paying over land value to government, government still does not recover all of this socially-generated value. Universally, it seems, speculators are that powerful. What might make a difference would be to share out a goodly portion of the rental revenue as dividends to residents, taking any sting out of paying land taxes or land dues while encouraging people with surpluses to invest in something more productive than just bidding up the price of land and housing.