Amman: Amman’s 2025 draft law on building and land tax aims to streamline electronic system integration and fully automate the valuation process, according to Ibrahim Zyoud, Chief Financial Officer (CFO) at the Greater Amman Municipality (GAM).
According to Jordan News Agency, Zyoud stated that the new law addresses several challenges present in the previous legislation. Key improvements include electronic notifications of property valuations, eliminating the need for paper-based communication, especially in cases involving vacant land, expatriates, or rented properties.
The law enables the determination of individual ownership shares in jointly owned properties based on official land records and assessed property values. It unifies databases between GAM, municipalities, and the Department of Land and Survey, significantly reducing human discretion in valuations, as all registered and subdivided buildings and lands will now be electronically assessed.
Zyoud noted that human input will be limited to field survey teams collecting data unavailable in municipal records such as actual building size, number of floors, units, and usage through the use of modern tools and specifications. All remaining assessment processes will be conducted electronically based on fixed, transparent formulas.
Human oversight will remain necessary in detecting unauthorized changes to properties such as unlicensed construction or demolition through coordinated digital monitoring, GIS technology, and physical inspections.
He emphasized that the law leaves no room for subjective estimations. Even when manual space calculation is needed, it must comply with digital standards, ensuring transparency in valuation disputes.
One key feature is the integration of zoning regulations into the valuation process. Building and land values will reflect permissible construction ratios and the administrative valuation assigned by the Department of Land and Survey, ensuring differentiation based on the level of services and restrictions tied to zoning categories.
The law aligns with GAM’s full automation strategy, providing instant online valuations for subdivided and licensed properties, while unlicensed structures are processed using advanced technologies. Notifications and objections are handled via property owners’ municipal accounts, with tax shares calculated based on registered ownership and benefit.
Land assessments will be directly linked with the Department of Land and Survey and calculated as a percentage of administrative value. For plots exceeding 1,000 square meters, the tax rate will be halved to 0.0002 from 0.0004, to reflect planning constraints and undeveloped conditions.
Taxable property values will depend on fixed indicators: usable floor area, zoning status, location classification, and a published per-square-meter rate based on property type-residential, commercial, industrial, educational, or tourism-related.
The law also removes preferential tax reductions for specific businesses, offering instead strategic discounts for activities aligned with municipal goals, such as green buildings, heritage preservation, and parking structures.
A standard 80% tax discount will be granted for properties owned and occupied by the owner, spouse, or direct relatives, with simplified eligibility. The law merges various fees into a single tax of 1% for owner-occupied homes and 3% for rented properties, including municipal knowledge fees and sewerage contributions. Taxpayers retain the right to dispute valuations, regardless of the percentage change.
Disputes will be reviewed by a dedicated objection committee, separate from field survey teams, with private-sector members included in appeal panels. Any ruling may apply retroactively, provided sufficient documentation is submitted.
Early payments will qualify for higher incentives of 10%, 8%, and 6% discounts within the first three months of the year compared to prior rates applied to a portion of the tax. Additionally, vacant properties will receive a 60% exemption, nearly doubling the previous rate.
