Taipei City Gov`t to Start Levying Luxury Housing Tax Next July

The Taipei City government is scheduled to levy luxury-housing tax from next July by subjecting some 10,000 houses to a markup on their housing tax, up to 2.8 times of the original amount, said Ting Yu-chun, director of the city government`s Department of Urban Development, yesterday (Nov. 30).

Ting noted that the plan will be finalized by the realty appraisal committee of the city government in mid-December. The extra tax levy zeroes in on luxury houses in areas with exorbitant commercial values.

Properties in those designated areas will be subject to a markup on their housing tax, whose extents will be determined according to transportation convenience, level of commercialization, and supply-demand situation. Luxury houses in Beitou district, for instance, will have to bear a markup of 1.2 times over the housing tax, the lowest, while the markup for Daan and Xinyi districts may hit 2.8 times.

Luxury houses liable to the extra tax burden will be selected by Taipei Revenue Service (TRS) of the Taipei City government according to eight criteria, including independent building, luxurious appearance, excellent location, good view, limited housing units per floor, parking space for every housing unit, tight security, and good management. TRS decided not to use price as the criterion, due to the lack of information transparency for the realty market and the difficulty in setting the benchmark price.

TRS estimated that some 10,000 housing units in 380 buildings in the city will meet the criteria for luxury house. The tax is expected to bring some NT$300 million extra revenue to the city government, or NT$1 billion after taking into account the increase in deed tax, inheritance tax, and gift tax.

(by Philip Liu)

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