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Is Land in Residential Zones Used to Grow Fruit Trees Exempt from Tax? Taichung Local Tax Bureau Reminds the Public: Land Value Tax Still Applies Once Public Facilities Are Completed

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Is Land in Residential Zones Used to Grow Fruit Trees Exempt from Tax? Taichung Local Tax Bureau Reminds the Public: Land Value Tax Still Applies Once Public Facilities Are Completed

(Taichung City) Many citizens mistakenly believe that as long as land is used for agricultural purposes, land value tax does not have to be paid. The Local Tax Bureau of Taichung City Government stated that whether land may be subject to agricultural land tax, which is currently suspended, depends not only on whether it is actually used for agricultural purposes, but also on whether it complies with requirements related to land use zoning and the status of public facilities. Land value tax is not exempt simply because crops are planted on the land. The Local Tax Bureau cited an example involving Mr. Li, who has farmed for many years. His land had long been used to grow pear trees and was previously subject to agricultural land tax. Recently, however, he received a notice stating that the land would be changed to land value tax, leaving him confused. It was later found that the land had been identified as an area where public facilities had been completed and therefore no longer met the requirements for agricultural land tax. As a result, it should instead be subject to land value tax. Cheng-an Shen, Director of the Local Tax Bureau, said that under the Land Tax Act, land for which a declared land value has been prescribed is subject to land value tax, except for agricultural land used for agricultural purposes, which may be subject to agricultural land tax. All other land is subject to land value tax. Under current regulations, urban land designated as agricultural zones or conservation zones, or land in other zoning categories where public facilities have not yet been completed and that is actually used for agricultural purposes, may be subject to agricultural land tax. Therefore, if urban land is designated as a residential, commercial, or industrial zone, and the four public facilities in the surrounding area, namely roads, tap water, drainage systems, and electricity, have all been completed, the land is considered to already have the functions needed for urban development. Even if crops are still planted on the land, it no longer falls within the scope of agricultural land tax and should instead be subject to land value tax at the general land tax rate. Director Shen further explained that Mr. Li’s land is located in an urban residential zone. Because the competent authority had determined that the four public facilities in the area had all been completed, the land is classified as being in an area where public facilities have been completed. It should therefore be changed to land value tax starting from the year following the completion of those facilities. After the Local Tax Bureau staff explained the relevant regulations in detail, Mr. Li understood the reason for the tax change. The land on which he had grown fruit trees for many years has now become land with diversified development value and may be used for broader planning in the future. He was finally able to resolve his doubts and expressed appreciation for the Local Tax Bureau’s professional and empathetic explanation. Director Shen reminded the public that to maintain tax fairness, the Local Tax Bureau will continue to conduct inspections of land in areas where public facilities have been completed. If citizens receive a notice that their land will be changed to land value tax and have questions about the tax assessment, they may first contact the Bureau for confirmation to protect their rights and interests. If they have difficulty making payment due to the change in tax category, they may also apply for installment payment of the tax in accordance with the law to ease their burden. Anyone with tax-related questions are welcome to call the toll-free service hotline at 0800-000321 or 04-22585000 and press 1 to be transferred to the Smart Customer Service Center, where dedicated staff will provide assistance.
  • Data update： 2026-07-23
  • Publish Date： 2026-07-16
  • Source： Local Tax Bureau
  • Hit Count： 105