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The meeting of Taipei City Government (TCG) and advisors of the financial group was successfully concluded

Commissioner You Shih-ming of the Department of Finance (DOF) presided over the meeting on May 24, inviting advisors of the financial group of the TCG to give advice on the evaluation of real estate in 2023. Many invaluable and professional suggestions were given by the advisors and will be taken as a municipal policy reference.

Commissioner You explained that in addition to exchanging views on the impact of the current global economic situation on the domestic financial side, the advisors of this meeting mainly discussed three major issues on the assessment of real estate in 2023, in order to make the tax base of house tax fairer and more reasonable. The main points are as follows:

  1. Study of Location Rate Adjustment: To make the standard value of houses more equitable horizontally and vertically, Taipei City Revenue Service (TRS) commissioned a research team from National Taipei University (research project sponsor: Professor Peng Chien-wen, the chairman of Chinese Institute of Land Appraisal) to conduct a study of the standard value of houses in Taipei and provide a proposal for the city's location rate assessment using relevant valuation measurement indicators (such as coefficient of dispersion [COD], and price-related differential [PRD], etc.).
  2. Study of whether the unit price of standard value of houses for new buildings completed after July 1, 2023, should be adjusted or not: According to the Fiscal Soundness Program proposed by the Executive Yuan in 2014, local governments were required to reasonably reassess the current value of a house and adjust the unit price of standard value of houses to 40% to 50% of the reasonable construction cost. In addition, according to the instructions of the Ministry of Finance, the unit price of the standard value of houses should be reasonably adjusted with reference to the "Construction Cost Index" of the Directorate General of Budget, Accounting and Statistics, Executive Yuan. Since the construction cost index in the city and nationwide and the price index of residential properties in the city have shown an upward trend, the relevant adjustment plan should be discussed.
  3. Whether the tax base deduction mechanism of house tax shall maintain for single owner-occupied houses and houses registered to lease for public welfare purposes: In order to realize housing justice, the government achieves the single owner-occupied houses and houses leased for public welfare purposes by landlords registered with the local government tax relief policy by means of housing tax base deduction. By referring to many similar legislations overseas, for example, in Buffalo, New York, the property tax provides exemptions to discount assessment for the elderly, disabled, and low-income owners. In New York City, the property tax is reduced based on the use, condition, improvement, and ownership status of the property. The continuation of this tax relief policy should be discussed.

Two new creations were introduced to the advisors, including the “Visual Location Rate Inquiry System” and the “Video Rental Service Cloud”. The main points are as follows:

  1. The Visual Location Rate Inquiry System: The TRS has launched the Visual Location Rate Inquiry System officially on March 28, 2023. (The system URL is https://www.trsroadrate.tpctax.gov.taipei), it is the first system that integrated map layer and location rate information, by using “building” as a unit with an easy-to-understand visualized interface for the public to quickly search for detailed house location rate information of any building located in Taipei City and nearby areas. The public can easily inquire about the trend of location rates at different locations.
  2. The Video Rental Service Cloud: To solve the problem that people are unable to go to the city hall to handle leasing cases in person due to work, the effect of the pandemic, residing in other counties or cities, or being abroad, DOF has launched the nation's first "Video Rental Service Cloud" (https://service.dof.gov.taipei/). The platform enables people to apply for leasing municipal non-public real estate or other consulting services through online video by using a mobile phone, tablet, or computer at home or other suitable places, providing innovative and convenient service.

DOF stated that the advisors spoke enthusiastically during the meeting and the suggestions will be taken as the municipal policy reference.