When is the compensation price determined when the State acquires land?

Clause 12, Article 3 of the 2013 Land Law explains that land compensation is the State's return of the value of land use rights for the recovered land area to the land user.

Clause 2, Article 74 of the Land Law clearly states: " 1. Land users whose land is recovered by the State and who meet the conditions for compensation prescribed in Article 75 of this Law shall be compensated.

2. Compensation shall be made by allocating land with the same purpose of use as the type of land recovered. If there is no land for compensation, compensation shall be made in cash according to the specific land price of the type of land recovered as decided by the Provincial People's Committee at the time of land recovery decision .

From the time of land reclamation notice to the issuance of land reclamation decision is a relatively long period of time. (Photo: Xuan Tien)

According to the above regulations, the principle of compensation when the State recovers land is implemented by allocating land with the same purpose of use as the type of recovered land.

In case there is no land for compensation, compensation will be made in cash according to the specific land price of the type of land recovered as decided by the Provincial People's Committee at the time of land recovery decision.

Specifically, Article 114 of the 2013 Land Law clearly states that the determination of specific land prices must be based on investigation, collection of information about land plots, market land prices and information about land prices in the land database and must apply appropriate land valuation methods.

Thus, the law stipulates that the time for determining land compensation price is when there is a decision to reclaim land. However, in reality, it is impossible to determine the exact time, because according to Article 67 of the 2013 Land Law on land reclamation procedures, before issuing a decision to reclaim land, the competent authority to reclaim land must issue a notice of land reclamation no later than 90 days for agricultural land and 180 days for non-agricultural land.

Thus, from the time of land reclamation notice to the issuance of land reclamation decision is a relatively long period of time.

According to Point d, Clause 4, Article 114 of the 2013 Land Law, Clause 5, Article 4 of Decree 44/2014/ND-CP and Clause 4, Article 3 of Decree 01/2017/ND-CP, specific land prices are determined by the land price adjustment coefficient method applied to cases of calculating land compensation when the State reclaims land.

The formula for calculating land prices is as follows:

Value of land plot to be appraised (01m2) = Land price in land price list x Land price adjustment coefficient (coefficient K)

In which: - Land prices in the land price list issued by the People's Committees of provinces and cities are applied in 5-year periods.

- The land price adjustment coefficient when calculating compensation is decided by the Provincial People's Committee but will be decided at the time the State decides to reclaim.

In other words, the land price adjustment coefficient does not apply yearly or periodically as in the case of calculating land use fees when issuing Red Books or Pink Books for areas exceeding the limit.

BAO HUNG

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