COMPARISON OF THE LAND AND BUILDING TAX LAW IN THAILAND WITH THE REAL PROPERTY TAX LAW IN NEW YORK, USA: CASE STUDY OF THE TAX ASSESSMENT AND ADMINISTRATION METHOD

Abstract

As both Building and Land Tax Act and Local Administration Tax Act give authorities to local administrative organization on imposing building and land tax and local administration tax, they, however, have been implemented for ages, together with problems and limitations concerning tax base, tax rate and tax deduction irrelevant to current circumstances. Since local administrative organization has deficit revenues, it is inadequate for local development. As a result, the government has to allocate budgets for additional support. The incumbent government therefore enacts a new property tax law named “Building and Land Tax Bill, B.E…” with aims to allow local administrative organization collect taxes efficiently, promote land tenure distribution and reduce disparity of property occupancy.

Upon enforcement of the law, authorized local administrative organization may face problems on tax collecting since the said law requires appraisal procedures different from the current applicable laws. The current laws on building and land tax and local administration tax require property owner as tax payer to submit property list (Phor. Ror. Dor 2 or Phor. Bor. Thor. 5) for paying land and building tax or local administration tax. Local administration organization has duties to survey and conduct land and building list in lieu of property owner which means that owner do not have duties to submit its property list. The local administration organization informs tax appraisal to property owner cum taxpayer directly at or by registered mail to domicile or principal address of taxpayer between dawn and dusk or working hours of taxpayer. This may cause inconvenient and prolong tax appraisal notice and right exercise of taxpayer.

Refer to author’s comparative study between land and building tax appraisal and management under the land and building tax bill B.E…. and the New York real property tax law, it is found that the New York law stipulates that law collecting concerning property utilization and tax rates are variable depending on property utilization. It is quite similar to Thailand’s bill. The different part is about tax imposing management including tax appraisal procedures and tax appraisal notice. Interestingly, the New York law prescribes tax imposing management with electronic method for convenience of operations i.e. tax exemption application, tax appraisal application by local administrator, tax appraisal appeal by local administrator, application for error correction concerning tax appraisal, tax relevant document issuance, tax payment, tax payment receipt, tax notice under applicable laws. The law gives power to competent authorities to stipulate standards together with court administration office and Comptroller General of the United States.      

Moreover, author studies property tax management with electronic methods of New York City and finds that electronic studies property tax management under the New York Real Property Tax Law suitable for application as guideline for Thailand’s property tax law.