The Interior Ministry has urged provincial governors to make sure local administrative organisations (LAOs) are prepared for new regulations under the land and building tax bill being deliberated by the National Legislative Assembly (NLA).
Permanent secretary for the interior Chatchai Promlert has written an urgent letter to the governors telling them to be prepared for the regulations, according to a ministry source.
Provincial authorities are being urged to inform LAOs -- which include tambon administrative organisations, municipalities and Pattaya City -- to come up with plans and measures needed for effective implementation of the regulations being drafted under the land tax collection bill.
Earlier, the ministry's Department of Local Administration, according to the source, also informed LAOs to draw up land maps for tax collection and property lists, which would serve as a database for the new levy. The bill, being deliberated by the NLA's scrutiny committee, is to replace the outdated house and land tax and local development tax law.
The source said those obliged to pay the new taxes are individuals or juristic persons who own land or properties as well as those who occupy or make use of state land or property.
Assets subject to tax collection cover land, structures and condominiums, while the tax collectors are the LAOs.
Exempt from the taxes are public domains belonging to the state, state properties not used for profit making, properties occupied by the United Nations and embassies, Thai Red Cross Society properties, common areas of condominiums or housing estates not commercially used, religious sites and other properties outlined in the royal decree.
The tax calculations will be based on the appraised value of land and structures.
According to the source, agricultural land and property will be taxed up to 0.2% of the appraisal price, while the ceiling rate for homes is at 0.4%. Land and property which do not fall into these two categories would be taxed up to 2%, a rate which applies to land and property which are left unused.
However, the NLA scrutinising the bill may lower rates or rewrite the bill's contents so as not to excessively tax people, the source said.
The tax exemption is granted to farm land and property valued at 50 million baht or lower as well as homes determined by the Land Department to be worth 20 million baht or lower.
However, royal decrees can be enacted later to lower the taxes to suit economic and social conditions or other situations, but the reduction must not exceed 90% of the tax payment, the source noted.
Also, chiefs of local administrative bodies have the power to reduce or waive the taxes in line with Interior Ministry regulations for land and property which are critically damaged making value assessment difficult, the source noted.
The land or property owners have the right to petition LAO chiefs to have their taxes waived or reduced, the source said.
In cases where land or property owners consider tax appraisals to be incorrect, they can petition LAO chiefs for a review of the assessment within 30 days after they are informed about their tax assessment.
After receiving the petitions, the LAO chiefs are obliged to deliberate them within 30 days. If the land or property owners still disagree with the chief's opinions, they can petition provincial committees reviewing tax appeals within 30 days.