The Legislative Yuan yesterday passed a bill that would require the reconstruction of urban buildings deemed excessively old or unsafe, with tax incentives for landowners who act quickly once the regulations are promulgated.
Applicants submitting reconstruction plans within five years of the bill’s enactment would not have to pay land taxes during the reconstruction phase, according to the rules.
Owners would pay land and building taxes at half of the standard rate for two years following construction, which can be extended to as many as 12 years in the case of a transfer of ownership during the reduced-tax period, the bill says.
The discounted tax rate could only be applied in a case where the property is owned by a legally defined natural person, not a private or public organization, it says.
Those who submit plans within the first three years would be permitted to increase a building’s capacity by 10 percent over standard land-usage regulations, provided structures do not exceed 1,000m2 in floor space.
Legislators said the bill is primarily aimed at buildings that do not conform with current regulations, such as the Building Act (建築法) and the Disaster Prevention and Protection Act (災害防救法), and should be torn down, as well as those that have a deadline by which they must be renovated.
Buildings that do not meet earthquake safety specifications, lack evacuation equipment or are at least 30 years old are also covered by the new rules, lawmakers said.
All reconstruction plans will require full agreement by property owners to avoid disputes, they said.
The bill would require local governments to provide housing or rent subsidies to socially and economically disadvantaged people who are unable to arrange alternative housing while their buildings are being reconstructed.
The bill also specifies that contractors assessing building safety must be properly certified, with failure to adhere to this rule punishable with a fine of between NT$1 million and NT$5 million (US$33,165 and US$165,826).
Owners of properties that fail safety assessments would be required to submit reconstruction plans by no later than May 31, 2027.
Democratic Progressive Party (DPP) Legislator Pasuya Yao (姚文智) said the bill would bring justice for residents in the face of severe housing development problems.
DPP Legislator Chen Chi-mai (陳其邁) cited estimates by the Ministry of the Interior stating that there are 3.8 million buildings in the nation that are at least 30 years of age or older.
Forty percent of those, or 1.54 million buildings, are unable to withstand an earthquake, Chen said.
“If we can systematically deal with these old buildings and put the public at ease, then this bill is the right first step in the urban renewal process,” Chen said.
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