Proposal to amend land valuation method, adjust land price list

The Ministry of Natural Resources and Environment is drafting a Circular amending and supplementing a number of articles of Circular No. 36/2014/TT-BTNMT dated June 30, 2014 of the Minister of Natural Resources and Environment detailing land valuation methods; developing and adjusting land price lists; specific land valuation and consulting on land price determination.

The Ministry of Natural Resources and Environment said that Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government regulating land prices has stipulated 5 methods of land valuation, including: direct comparison, deduction, income, surplus, land price adjustment coefficient and conditions for applying these 5 methods. Circular No. 36/2014/TT-BTNMT dated June 30, 2014 of the Ministry of Natural Resources and Environment stipulates in detail the methods of land valuation, procedures for developing land price lists, specific land valuation and land price consultancy.

The above legal documents have created a synchronous legal corridor for land valuation work at the local level. The work of determining specific land prices has also been paid attention to by provinces and cities and has basically met the requirements; it has basically been carried out according to a strict process (investigation, survey to determine land prices, through the Land Valuation Council, land price decision), the results of the determination are consistent with reality, contributing to ensuring the rights of people whose land is recovered, increasing revenue for the state budget.

However, in the context of strong economic growth, attracting many development investment projects, specific land valuation in some places is not timely, there is no mechanism and resources to collect full data, information on land prices popular in the market, ensuring valuation is consistent with market prices. The application of land valuation methods in some localities has revealed limitations that need to be resolved.

According to the Ministry of Natural Resources and Environment, it is necessary to issue a Circular amending and supplementing a number of articles of Circular No. 36/2014/TT-BTNMT to promptly remove difficulties and obstacles in the process of implementing land valuation.

Amendment of regulations on land valuation methodsIn the draft, the Ministry of Natural Resources and Environment proposed to amend and supplement Article 3 of Circular No. 36/2014/TT-BTNMT in the direction of: Specific regulations on the source of land price information collection for comparable land plots for auctioned land prices, land prices recorded on land use right transfer contracts and market land prices based on land data.

In addition, remove the regulations on successful transactions in the market and information collection through direct interviews; specify the scope of information collection in cases where the valuation area cannot collect sufficient information; The provincial People's Committee, based on the actual situation in the locality, shall specify the table of adjustment rates for the different factors of the land plots compared to the land plot to be valued.

The Ministry also proposed to amend and supplement Article 5 of Circular No. 36/2014/TT-BTNMT in the direction of: Specifying the time to calculate the average annual income of the land plot to be valued for agricultural and non-agricultural land; specifying the case where the information to determine the average annual income of the land plot to be valued does not fully reflect the income for each year, does not accurately reflect the actual income from land use for agricultural and non-agricultural land.

At the same time, regulations on average savings interest rate (r) of 12-month VND deposits at commercial banks in which the State owns more than 50% of charter capital in the province of the year (calculated from January 1 to December 31) before the valuation time and n is the remaining land use term of the land plot to be valued in the case of land lease with one-time land rent payment for the entire lease term (calculated by year); is 70 years in the case of land lease with annual land rent payment.

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