Legal information

Article introduction: How to collect paid use fees for state-owned land? Are there any collection standards and methods?

Part One: Original text of the law

Interpret Article 55 of the Land Management Law, the methods for the collection and distribution of paid use fees for state-owned land. This article is about the regulations on the collection and distribution of paid use fees for state-owned land. Article 55 of the "Land Management Law of the People's Republic of China" stipulates that construction units that obtain state-owned land use rights through transfer or other paid use methods can use the land only after paying land use right transfer fees and other paid land use fees and other fees in accordance with the standards and methods prescribed by the State Council. From the date of implementation of this law, 30% of the paid land use fees for newly added construction land will be turned over to the central government and 70% will be reserved to the relevant local people's governments, all of which will be used exclusively for the development of cultivated land.

Part 2: Interpretation of legal provisions

1. Construction units that obtain state-owned land use rights through transfer or other paid use methods must pay land use right transfer fees and other paid use fees and other fees before they can use the land. According to the provisions of this article, paid usage fees should be paid first before using the land. The specific payment methods and methods shall be agreed upon in the paid use contract for state-owned land use rights. If the transfer method is adopted, the transfer fee and other fees for the state-owned land use rights must be paid first, and then the land administration department of the county or city people's government can register the land use rights and issue a "State-owned Land Use Certificate", and then the construction unit can obtain the land and use it in accordance with the law. Ying Ting believes that if the state-owned land lease method is adopted, the state-owned land use fees and other fees that need to be paid according to the state-owned land lease contract should be paid in one go. The land can only be used after obtaining the "State-owned Land Use Certificate" and completing the land registration. However, if the state-owned land lease contract requires annual rent payments to the people's government in the future, the payment shall be made in the manner and time stipulated in the contract. If state-owned land is used as a shareholding, the relevant procedures for holding state-owned land equity must be completed first, and only after signing a contract or articles of association can the land be registered and the land used. Although a contract for the paid use of state-owned land has been signed, if the land user fails to pay the paid use fees for state-owned land as stipulated in the contract, the government will not provide land use rights in accordance with the provisions of the contract, and the construction unit shall not use the land.

2. The standards and methods for payment of paid use fees for state-owned land shall be stipulated by the State Council. The State Council will formulate principles, standards and collection methods for the use of state-owned land in accordance with the provisions of this law. The former Ministry of Finance and the former State Land Administration issued the "Notice on Strengthening the Collection and Management of Land Use Rights Transfer Fees" in January 1995, which stipulated the collection and management methods for transfer fees in the transfer of state-owned land. The State Council will re-stipulate the income and distribution methods for the paid use of state-owned land in the future based on the new law and the actual situation of land use system reform.

3. According to the provisions of this Law, all income from the paid use of existing construction land in the future will be reserved to local governments for urban construction and land development. However, 30% of the paid land use fees for newly added construction land will be turned over to the central government and 70% will be reserved for local governments, which can only be used for cultivated land development. Regarding the proportion of new construction land divided between the central and local governments, there was considerable controversy in the discussion. Central Document No. 11 stipulated that all land should be turned over. However, some places have proposed that the responsibility for the dynamic balance of total cultivated land stipulated in this law lies with provincial governments. Provincial governments have the primary responsibility for reclaiming farmland. Ying Ting learned that in addition to the land for construction projects being reclaimed by the construction unit, the expansion of urban construction land is the responsibility of the city government. There are also ecological construction, agricultural structural adjustment, and natural disasters that destroy cultivated land that require compensation. The provincial people's government has a heavy task of reclaiming cultivated land and must have a certain amount of funds as a guarantee. Therefore, it was finally determined that the central government and local governments would be divided into 30% to 70%, with 70% going to the local governments. The methods for distributing land income to local governments shall be stipulated by the people's governments of each province, autonomous region, and municipality directly under the Central Government.

4. The term "newly added construction land" as used in this Law refers to construction land that is occupied by agricultural land and has been converted to agricultural land in accordance with the law, including land occupied by construction such as cultivated land, forest land, grassland, farmland water use land and breeding water surface. The conversion of agricultural land shall be regarded as new construction land.

Yingting reminds you:

If you encounter similar problems, you can consult a lawyer specializing in land acquisition and demolition, or ask a lawyer to intervene and provide you with legal advice using professional legal knowledge.