Problems on Enforcement of Land and Building Tax Act, B.E. 2562

Abstract

According to the Land and Building Tax Act B.E. 2562,  the tax rate for the use of land and buildings for agricultural purposes is relatively low, and there are exemptions for individual owners of land and buildings used for agriculture within each local administrative organization district, up to an amount of 50 million baht. Consequently, this has raised substantial concerns about the vast amount of tax evasions. According to a study of property tax collection in the state 2523 of Texas, United States, taxpayers must first register their properties for tax assessment, and then the assessor will then conduct property surveys to ensure correctness. In New Jersey, landowners applying for an agricultural land assessment must provide proof of continuous ownership of the agricultural land for at least 2 consecutive years prior to the proposed tax year, with a minimum agricultural area of 5 acres. Additionally, the land must generate average agricultural sales of at least $1,000 per year for the first 5 acres and must remain in agricultural use throughout the proposed tax year. However, if the land is used for non-agricultural purposes, back taxes must be paid. To ensure effective enforcement of the Land and Building Tax Act B.E. 2562 and to increase revenue for local government bodies, Section 11 of the Land and Building Tax Act B.E. 2562 should be amended to require property owners to file a property declaration form before officials conduct inspections for accuracy and issue tax assessment notification letters to taxpayers. Additionally, Section 37, paragraph two, should be amended to ensure that the use of land and buildings for agriculture must involve genuine agricultural activities. Also, Section 40, paragraph one, should include an additional clause specifying criteria for tax exemption for natural persons, who must be engaged in agricultural activities for self-sufficiency.