In order to implement the Interim Regulations of the People's Republic of China on Farmland Occupation Tax（the "Regulations"）promulgated by the State Council on April 1，1987，the specific policy concerned is hereby stipulated as follows：
　　1. According to the Regulations，the vegetable plot is within the scope of taxation，and the occupation of vegetable plot shall be taxed in accordance with regulations. After levy of the farmland occupation tax on the vegetable plot，some cities may remain the new vegetable plot construction fund for the vegetable plot in suburban districts expropriated by the state for the purpose of construction. In order to guarantee the state tax revenue，the vegetable plot construction fund shall be adjusted appropriately if it is relatively high. The vegetable plot used by township and village enterprises and farmers for construction of housing shall be imposed only the farmland occupation tax.
　　According to the decisions of the State Council，50 percent of the farmland occupation tax shall be allocated to the local governments to establish agricultural development fund for reclamation and consolidation of land and improvement of existing arable land. After adopting uniform farmland occupation tax throughout the country，the farmland reclamation fee imposed by several provinces shall be abolished.
　　2. The scope of taxation. The farmland occupation tax applies to all state-owned and collectively-owned farmlands. Farmland refers to the land that is used to plant agricultural crops（including vegetable plots and garden plots）。The fish pond or other agricultural land used for construction of housing or other non-agricultural purposes shall also be regarded as the farmland subject to the farmland occupation tax. Garden plots include seed plot，flower nursery，tea garden，orchard，mulberry field and other areas of land devoted for cultivation of economic forest. Whether to impose tax on the other agricultural land，such as use of the tidal flat，grassland，water surface and forest land，originally used in planting，raising and breeding and now used for non-agricultural construction shall be determined by each province，autonomous region or municipality based on the principle of protecting agricultural land resources and ecological balance，taking into account local conditions.
　　3. The applicable tax on the farmland occupation shall be determined by county，the occupation of farmland per head（calculated based on the total population and existing farmland）and the economic development.
　　Within a county，if there is a huge difference between villages and towns，the county may stipulate different applicable taxes for different towns（villages）。
　　The tax at a half reduction for rural residents means the imposition of tax at a rate of half reduction for the rural residents（including fishermen and herdsmen）to build residential housing with farmland. Urban residents（non-agricultural household）who use the farmland to build residential housing or rural residents or joint-households who use the farmland for non-agricultural production and operation shall be taxed in full. The reservoir emigrants，victims of natural calamities and refugees who use the farmland to build housing shall be exempted from farmland occupation tax.
　　4. In order to coordinate the policy，avoid a huge discrepancy between the tax amounts of neighboring areas and ensure the fulfillment of the state taxation，the average tax per square meter for each province，autonomous region and municipality shall be set as follows：Shanghai：RMB9；Beijing：RMB8；Tianjin：RMB7；Zhejiang（including Ningbo），Fujian，Jiangsu and Guangdong（including Guangzhou）：RMB6；Hubei（including Wuhan），Hunan，and Liaoning（including Shenyang and Dalian）：RMB5；Hebei，Shandong（including Qingdao），Jiangxi，Anhui，Henan and Sichuan（including Chongqing）：RMB4.5；Guangxi，Shaanxi（including Xi'an），Guizhou，and Yunnan：RMB4；Shanxi，Heilongjiang（including Harbin）and Jilin：RMB3.5；Gansu，Ningxia，Inner Mongolia，Qinghai and Xinjiang：RMB2.5. Each province，autonomous region and municipality shall set the applicable tax amount differentially for each county（city）and suburb，but the average tax amount shall not be lower than the average tax amount specified above.
　　5. The scope of tax exemption. The specific policy for related tax exemptions in the Regulations shall comply with the following provisions：（Note：on December 21，1987，the Ministry of Finance clarified in the Reply to the Issues About Farmland Occupation Tax for Highway that，in consideration of the actual conditions of highway construction，the farmland occupation tax on the highways shall be imposed at the lower limit within the applicable tax amount specified in the Regulations. The farmer revolutionary base areas，areas inhabited by minority nationalities，remote and border areas and poverty-stricken areas which build highway and have difficulties in tax payment may apply to the Ministry of Finance for tax relief after being examined and verified by the financial department（bureau）of relevant provinces or autonomous regions.）
　　The land used for military facilities shall be limited to the commanding and protective works at the provincial，autonomous region and municipality above of the armed forces（including armed police，sic passim），campaign（intelligence）positions equipped with weapons and devices，campaign and test bases for advanced weapons，military airport，ports（wharves），defense works，military communication stations，lines，navigational facilities，military warehouse，oil transportation lines，shooting range，barracks，office buildings of military establishment at division level and below，ordnance repair works，and the railways and feeder highway leading to military facilities. The armed forces which use farmland for non-military purpose or for non-agricultural production and operation shall not be exempted from tax.
　　Railway lines refer to the railway lines and the land reserved at the both sides of the lines and the railway stations and goods yards and warehouses for loading and uploading along the lines. The other storage yards，warehouses，guest houses，employee dormitories and other lands used by the railway system shall not be exempted from tax. According to the provisions of the Circular of State Development Planning Commission and other Four Ministries and Commissions on the Implementation of Economic Contract Responsibility System Plan by the Ministry of Railways approved and forwarded by the State Council on March 31，1986，the Ministry of Railways started to introduce the economic contract responsibility system in the Seventh Five-Year Plan period and be free of new tax categories. The construction land within the economic contract scope of the Ministry of Railways is exempted from farmland occupation tax during the Seventh Five-Year Plan period. The construction land subject to the farmland occupation tax will be taxed from 1991. The lines used for construction of local railways，land reserved at the both sides and the loading and uploading yards and warehouses of the railway stations along the railway lines may be exempted from the farmland occupation tax，and other land occupied shall be imposed such tax in accordance with regulations.
　　The runways and parking aprons of civil airports，and necessary open spaces，air terminals，control towers，and radar facilities of airports are exempted from farmland occupation tax. Explosive magazines refer to the special-purpose explosive warehouses of state material reserve departments and the land necessary for ensuring the security.
　　Schools refer to the lands used as the schoolroom，lab，playground，library and office of full-time universities，colleges，middle schools and primary schools（including schools run by departments and enterprises）and the dining room and dormitory of teaching staff and students，which shall be exempted from farmland occupation tax. The land used by a school for non-agricultural production or operation shall not be free of tax. The land used to operate evening school of workers，studying courses，training centers and correspondence schools shall be not exempted from farmland occupation tax.
　　The land used to run hospitals，including the staff hospitals，health centers，medical stations，and clinics of military forces，departments and enterprises shall be exempted from farmland occupation tax. The land used for sanatorium shall not be free of tax.
　　The land used for funeral home and crematorium shall be free of farmland occupation tax.
　　If the tax-exempt lands hereinbefore change their uses，which are beyond the scope of tax exemption，the farmland occupation tax shall be paid from the date of change.
　　The lands for farmland water conservancy facilities that directly serve the agricultural production shall be exempted from the farmland occupation tax. The farmland of water conservancy project used for power generation and tourism shall not be exempted from farmland occupation tax.
　　6. Foreign-invested enterprises mentioned in the Regulations shall be limited to the Sino-foreign equity joint-ventures，Sino-foreign contractual joint ventures and wholly foreign-owned enterprises in the territory of China. These enterprises are free of farmland occupation tax. Except for these enterprises，the other enterprises shall pay farmland occupation tax in accordance with the Regulations.
　　7. The Regulations come into effect on the date of promulgation，i.e. April 1，1987. The farmland used from April 1 shall pay farmland occupation tax in accordance with law. The land used without approval and going through land use formalities with the land administrative authority after April 1 shall pay the farmland occupation tax according to the regulations. By April 1，1987，a unit or individual that is allowed to expropriate or use a farmland but has not used it for more than two years shall pay the farmland occupation tax according to the regulations.
　　8. For the land that has been imposed farmland occupation tax but is subject to the agricultural tax，the agricultural tax imposed on the regular annual output shall be deducted from the farmland occupation tax. The deduction shall be submitted to higher level together with the final account of farmland occupation tax. After being examined and verified by the Ministry of Finance，the agricultural tax revenue target of related provinces，autonomous regions and municipalities shall be reduced for the next year. The reduced agricultural tax shall be borne according to the fiscal system.