Chapter Two
Land Subject to Fees
Article 2:
1- The basis for determining the urban boundary and designating land uses shall be the urban boundary maps and detailed plans issued by the competent authorities in accordance therewith.
2- Any amendment or change to the urban boundary of any city shall result in a corresponding change to the spatial scope of the tax.
Article 3:
1- One or more committees shall be formed within the Ministry by a decision of the Minister, with no fewer than three members, one of whom must be a member of the Saudi Authority for Accredited Appraisers.
2- Committee members must have sufficient experience in real estate appraisal, and the term of membership on the committee shall be three years, renewable.
3- The committee shall determine the fair value of land subject to the fee in accordance with the standards and regulations set forth in the law and regulations, and shall issue its decisions by majority vote.
4- The committee’s rules of procedure, operating procedures, and member compensation shall be established by a decision of the Minister.
Article 4:
The value of land subject to the fee shall be assessed based on its value as of the date of the announcement, in accordance with the following criteria:
1- The land’s location within the urban area.
2- Its uses.
3- Its topography.
4- The building regulations applicable to it.
5- The availability of public services and access to public utilities.
6- The surrounding commercial, industrial, and social activities and uses that affect residential use.
Article 5:
1- For the purpose of assessing the value of land subject to the levy, the availability of public services and access to public utilities shall be determined as follows:
a) Identify the public services and utilities whose availability affects the valuation of the land.
b) The weight of each service or utility shall be determined based on its necessity for residential use.
c) The weight of a service or utility shall not vary within a single city.
2. The Ministry may conduct periodic reviews of the weighting of services or facilities, provided that the total weights are calculated to determine the base value of the land in accordance with a special formula established for this purpose by the Ministry.
