Actual Selling Price Property Taxation Will Ensure Justice in Housing

Actual Selling Price Property Taxation Will Ensure Justice in Housing
China Times editorial (Taipei, Taiwan, ROC)
A Translation
December 14, 2011

Summary: President Ma Ying-jeou recently issued a mobilization order concerning five "Justice in Housing" bills which were finally passed by the Legislative Yuan yesterday. These bills deserve our applause. But the five Justice in Housing bills are merely the first step. We still have a long way to go before "Actual Selling Price Property Value Reporting" and "Actual Selling Price Property Taxes" become a reality. Only the implementation of Actual Selling Price Property Taxes can ensure Justice in Housing. Therefore the ruling and opposition parties still have much work to do.

Full Text Below:

President Ma Ying-jeou recently issued a mobilization order concerning five "Justice in Housing" bills which were finally passed by the Legislative Yuan yesterday. These bills deserve our applause. But the five Justice in Housing bills are merely the first step. We still have a long way to go before "Actual Selling Price Property Value Reporting" and "Actual Selling Price Property Taxes" become a reality. Only the implementation of Actual Selling Price Property Taxes can ensure Justice in Housing. Therefore the ruling and opposition parties still have much work to do.

The five Justice in Housing bills include Real Estate Brokerage Management Regulations, Land Laws, Equalization of Land Rights Regulations, Land Acquisition Regulations, and the Housing Act. The first three bills pertain to Actual Selling Price Property Value Reporting. They require actual selling prices to be reported within 30 days after real estate transactions. The amended Land Acquisition Regulations pertain to land acquisition at Actual Selling Price Property Values rather than listed prices. The Housing Act draft law states that a certain percentage of social housing must be rental and not for sale, to ensure sufficient housing for disadvantaged members of society.

In order to achieve Justice in Housing, President Ma has incorporated this plank into his Golden Decade campaign platform. Real estate transaction amounts must be accurately reported. Property taxes must reflect actual selling prices. DPP Chairman Tsai Ing-wen has incorporated this item into her Platform for the Coming Decade. Property taxes for residential property not occupied by the owner will be taxed in stages, based on selling prices. Land taxes and housing transaction taxes will be combined into a single real estate transaction tax. The five bills virtually ground to a halt in the legislature. Private sector organizations wondered whether the ruling and opposition parties were serious.

Today however, under President Ma's leadership, the five bills passed, one day before the legislature adjourned. They came through on their promise to voters. The Housing Act states that social housing must constitute at least 10% of all rental housing for low-income households, for those over 65 years old, and for the handicapped. Finally, disadvantaged members of society enjoy basic protections. The more controversial Land Acquisition Regulations amendment still needs to clear the Executive Yuan. Input from farm groups was included in the final result. But farm groups still cannot accept certain aspects of the amended regulations pertaining to the abuse of eminent domain.

Fortunately all five bills passed. That however, does not mean that Justice in Housing will immediately become a reality. The Real Estate Brokerage Management Regulations and three other laws must also be amended. This is merely the first step toward Actual Selling Price Property Value Reporting. At this stage Actual Selling Price Property Value Reporting is not the same as Actual Selling Price Value Disclosure. According to the version passed by the Legislative Yuan, licensed real estate brokers, consignment sellers, and local governments must remove the house number, lot number, building number, sign the contract, transfer ownership, and register the transaction with the responsible government agencies within 30 days. When the average price of real estate in the district is announced, the disclosed price for individual housing units will no longer reflect selling prices. They will have departed significantly from the selling prices.

For years, real estate taxes have not been levied on the basis of selling prices. Opportunists and real estate speculators have paid little in taxes. This contributes to soaring housing prices. It also contributes to the widening gap between rich and poor. According to a Control Yuan survey, the super rich can buy and sell luxury condos, making profits amounting to 173 million dollars. Consider their own residences. Land taxes and housing transaction income taxes may amount to one million dollars. But the tax burden is merely 1%, How can the public countenance such an unfair tax system? Change is inevitable. The Legislative Yuan has just passed a bill taking the first step toward Actual Selling Price Property Value Reporting.

The ruling party has made a genuine effort to curb soaring housing prices. But it must do more. Consider the Luxury Tax implemented on June 1. At the end of November the Ministry of the Interior announced its "Survey of Third Quarter Trends in Housing Demand." The ratio between real estate prices and incomes on Taiwan is now 9.2 to one, higher than last quarter. In Taipei the ratio is 14 to one. To be able to afford a house, people have to give up eating and drinking for 14 years. These numbers show that the Luxury Tax has yet to significantly reduce housing costs. Now that the Luxury Tax is being levied, more people are giving gifts. Many speculators are using gift giving to transfer property to others to sell it. This enables them take advantage of lower gift tax rates, and avoid higher luxury taxes. No wonder the Luxury Tax has been ineffective.

Any reform will inevitably be met by a backlash from vested interests. If one backs down merely because one encounters a backlash, people will soon see right through you. When President Ma issued his mobilization order, the five Justice in Housing bills finally passed. This demonstrated the ruling party's commitment to reform. Actual Selling Price Property Value Reporting is the basis for Actual Selling Price Property Taxation. If the former fails to pass, one can forget about the latter. The next step after Actual Selling Price Property Value Reporting is Actually Selling Price Property Taxation. It is certain to meet with even greater resistance. We hope whoever wins the election will show greater determination and courage in promoting Actual Selling Price Property Taxation. We hope he or she will establish a just system for property taxation, and a just system for housing provision.

推動實價課稅 落實居住正義
2011-12-14中國時報

馬英九總統日前下達動員令，攸關「居住正義」的五大法案昨日終於經立法院三讀通過，值得肯定。不過，這五大法案過關只是邁向「居住正義」的第一步，因為不動產「實價登錄」距離「實價課稅」仍有漫長的路要走，唯有落實「實價課稅」才能真正實現「居住正義」，因此朝野仍須努力。

攸關「居住正義」的五大法案包括《不動產經紀業管理條例》、《地政士法》、《平均地權條例》、《土地徵收條例》、《住宅法》等，前三項法案主要與不動產實價登錄有關，規範不動產交易完畢後三十日內要以實際成交價格登錄；《土地徵收條例》修法重點是土地徵收以市價取代公告地價；《住宅法》草案重點則是明定一定比率的社會住宅，只租不售，以保障弱勢者的住居權。

為落實「居住正義」，馬總統在「黃金十年」願景中指出，不動產交易將實價登錄，並逐步推動實價課稅；民進黨主席蔡英文在「十年政綱」中宣示將針對非自用住宅分階段實價課稅，推動土地、房屋交易所得合一之不動產交易所得稅。不過，五大法案的立法進度幾乎停擺，民間團體一度質疑朝野「玩假的」。

如今在馬總統號召下，五大法案趕在休會前一天通過，算是給了選民一個交代。依《住宅法》規定，社會住宅應至少提供十％以上比例出租給低收入戶、六十五歲以上老人及身心障礙者，弱勢者的居住權總算有了最基本保障。爭議較大的《土地徵收條例》修正案最後依行政院版過關，雖然最後也採納部分農民團體的意見，不過，對徵收農地的聽證程序設下諸多條件，農民團體認為無法杜絕浮濫徵收的問題。

事實上，五大法案幸運全數過關，並不代表「居住正義」立刻實現，因為《不動產經紀業管理條例》等三法完成修正，只是不動產「實價登錄」的第一步，而現階段的「實價登錄」不等同於「實價揭露」。依立法院通過的版本，規範經營仲介、代銷業者、地政士在簽訂買賣契約書並辦竣所有權移轉登記後卅日內，向中央主管機關以區段化、去除門牌、地號、建號的成交案件實際資訊。屆時是以區段平均價公告之，並非每戶交易價格「實價揭露」，效果已大打折扣。

長久以來，不動產稅制由於未依「實價課稅」，投機客炒房獲取巨大利益卻只繳很少的稅，不僅助長了房價飆漲，也成為擴大貧富差距的幫兇。依監察院調查，富豪買賣帝寶豪宅，獲利達一點七三億元，若以自用住宅計，土增稅與房屋交易所得稅共須繳一百多萬元，負擔的稅率只有百分之一，這樣的租稅制度，民眾能麼看得下去？如此不公不義的租稅制度，已到了非改不可的關鍵時刻，如今立法院通過相關法案，只是踏出「實價登錄」的第一步。

為了抑制房價飆漲，執政黨其實做了努力，但是還不夠。讓我們檢視一下六月一日起實施的奢侈稅。內政部十一月底公布「第三季住宅需求動向調查」，台灣地區房價所得比高達九點二倍，比上季上揚；其中，台北市房價所得比為十四倍，市民必須不吃不喝十四年才買得起房子。這項統計顯示，奢侈稅的效應迄今不明顯，民眾購屋負擔並未大幅減輕。奢侈稅開徵後，各地贈與案件有增加趨勢，許多投機客改以贈與方式轉手再賣，可適用較低的贈與稅率，又可以歸避高額奢侈稅，難怪奢侈稅的成效不彰。

任何改革都免不了遭遇既得利益者的反彈，如果遭遇反彈就退縮，很快就被看破手腳。這次在馬總統下達動員令之後，「居住正義」五大法案終於過關，確實展現了執政黨推動改革的決心。不動產「實價登錄」是「實價課稅」的基礎，這一步若跨不出去，就甭提「實價課稅」了；可以想見，實價登錄之後，未來要進一步落實「實價課稅」，勢必遭遇更大的阻力。我們期盼，未來新當選的領導人，能展現更大的決心與魄力推動「實價課稅」，建立公平的不動產稅制，真正落實「居住正義」。