Procedures of Shanghai Municipality on the Administration of Farmland Reclaiming Fees

April 23, 2019

SMPG D [2019] No.22

With a view to doing a good job in the management of land reclamation fees in this Municipality, these Procedures are formulated in accordance with the Opinions of the CPC Central Committee and the State Council on Strengthening the Protection of Farmland and Improving the Balance of Land Occupation and Compensation (CPCCC G [2017] No.4) and the Procedures of Shanghai Municipality on Implementing the Land Administration Law of the People's Republic of China.

I. Objects of Levy

Units and individuals approved to occupy farmland for non-agricultural construction shall pay fees for farmland reclamation in accordance with regulations in case reclamation is not possible or the reclaimed land does not meet the requirements.

II. Subject of Levy

The municipal or district planning and resources departments are responsible for levying land reclamation fees from land-using units or individuals.

III. Levying Procedures

1. Construction projects submitted in batch by district in conversion scheme of agricultural land

When the district people’s government applies to the municipal planning and resources department for the conversion of agricultural land to construction land, unless otherwise the district can achieve the balance of occupation and compensation, the district planning and resources department shall make pre-payment to the municipal planning and resources department in accordance with the standards of levying on farmland reclamation fees in this Municipality.

In case that the conversion application of agricultural land to construction use is approved, the municipal planning and resources department shall transfer the prepayment made by the district department to the farmland reclamation fees.  In case of disapproval, the pre-payment already made by the municipal planning and resources department shall be returned to the district people's government.

When the land is provided to the land-using unit in accordance with the approved scheme for the conversion of agricultural land, the district planning and resources department shall, before approval and issuance of the Permit of Construction Land, levy land units or individuals the reclamation fees in accordance with the prescribed standards.

2. Construction projects with separate conversion schemes of agricultural land

Where the land used for construction projects involves the occupation of farmland, the land-using units shall, when applying to the municipal planning and resources department for construction land, make pre-payment to the municipal or district planning and resources department on the basis of the Supplementary Plan for Farmland approved by the district people’s government in accordance with the prescribed standards of farmland reclamation fees. The project implemented therein by the district for the balance of occupation and compensation, land-using units shall pay to the district planning and resources department; where the balance of occupation and compensation is implemented through overall planning by the municipal people’s government, the land-using units shall pay to the municipal planning and resources department.

Once the application for construction land is approved, the advance payment shall be transferred from the municipal and district planning and resources departments to the farmland reclamation fees; in case of disapproval, the municipal or district planning and resources department shall refund the prepayment already made by the land-using units.

For the occupation of permanent basic farmland approved according to law in the application process of converting agricultural land to construction use, the payment tariff shall be twice the maximum standard of this Municipality for farmland reclamation.

IV. Levying Management

Levying farmland reclamation fees shall be implemented in accordance with the Procedures of Shanghai Municipal People’s Government for the Administration of Non-Tax Revenue Levy, and the full amount of the revenue shall be directly turned over to the State Treasury. The land reclamation fees levied by the district planning and resources department shall be turned over to the district treasury in accordance with the provisions. The land reclamation fees directly levied by the municipal planning and resources department and the land reclamation fees paid by the district shall be turned over to the municipal treasury in full in accordance with the provisions.

V. Use Management

1. Farmland reclamation fees shall be mainly used for:

(1) expenditure on farmland development projects and related agricultural items;

(2) expenditure approved by relevant departments for purchasing other farmlands for balance of occupation and compensation in other places;

(3) expenditure for land consolidation, mudflat induced siltation, enclosure for farmland reclamation in this Municipality; and

(4) expenditure for management of farmland reclamation.

2. Relevant competent budgetary departments and units (departments for the use of funds) shall, according to their respective duties and functions, manage funds and projects in accordance with the requirements of departmental budgets, direct allocations from the State Treasury and government procurement.

3. Land reclamation projects involved shall be examined and administered by the Municipal Development and Reform Commission and the Municipal Finance Bureau in conjunction with relevant departments.

VI. Supervision and Management

The municipal and district planning and resources departments shall strengthen the management of land reclamation levy, make statistics of monthly levy and reduction, and copy them to the Municipal Finance Bureau. The municipal and district departments of development and reform, auditing and finance are responsible for supervising the land reclamation fees levy and use.

These Procedures shall be effective as of the date of issuance and be valid until March 31, 2024.

Shanghai Municipal Finance Bureau

Shanghai Municipal Development and Reform Commission

Shanghai Municipal Agricultural and Rural Commission

Shanghai Municipal Bureau of Planning and Natural Resources

April 16, 2019