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A Study on the Effective Measures for Development Charges System

  • Public Land Law Review
  • Abbr : KPLLR
  • 2017, 80(), pp.113-142
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

sim min suk 1

1동국대학교

Accredited

ABSTRACT

According to the statistics of the Ministry of Land Transport and Transport in 2013, 1% of the total population(500,000 people), owns 55.2% of the land, and 10% of the total population(5 million people), own 97.3% of the land. This polarization of land ownership may serve a maximum of causes that may lead to a polarization of society. According to the 「RESTITUTION OF DEVELOPMENT GAINS ACT」, if the development project approved by June 30, 2018 is in the metropolitan area, the development charges is reduced by 50%, In the non-metropolitan area, the development charges is exempted. These things tells us that the development charges system is weakened a lot of its current effectiveness. At the present time, I would like to suggest Legislative measures to make the development charges system as more effective. The first is to operate the development charges system consistently. In this regard , Singapore has never ceased levying development charges. The second is to raise the burden of the development charges to 50% in the metropolitan area and 40% in the non-metropolitan area. In this regard, Singapore is imposing 100% of the land value increase for the commercial use of the business area and 70% of the land value increase for the land development for other purposes. Third, the start of the imposition of the contributions for development should be the official land price of the next year after the development project is announced, and the end of the contributions for development should be the official land price of the next year when the development project is completed. This is to ensure that development gains are not reduced but reflected properly. In this regard, Singapore is calculating the development charges at market prices. The fourth is to impose the development charges without restriction of the target business. The fifth is to impose a development charges without any limit on the scale of the development project. The sixth is to approve the development plan after the development charges is secured. In this regard, Singapore has no restrictions on the scope and scale of the development project in terms of imposing the development charges, and the competent authority does not issue planning permission or preservation permission unless the development charges is paid or satisfied. The Constitutional Court explicitly recognize the public concept of land ownership, and widely admits the discretion of the legislation. The present state of our land ownership is showing a polarization phenomenon in land ownership as if we are seeing the polarization of society. This polarization increases the friction and conflict between strata, and it does not help to stabilize the lives of ordinary people. Rather, The amount of money that is returned as development gains can contribute to equal social development if it is stipulated in the 「RESTITUTION OF DEVELOPMENT GAINS ACT」 to be used only for public investment.

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