The Taipei city government has taken a major step toward real estate tax reform.

Starting July 1st, housing taxes for more than 10,000 so-called "luxury apartments" in the city will be increased by 120 to nearly 300 percent. While the authorities are legally prohibited from disclosing the specific list of these properties, the official criteria for selection have been announced this week.

There are so many luxury condos in Taipei city that cost at least NT$ 1 million each ping, but, no matter how much they cost, the property tax would be similar to other buildings.

Taipei city has thus announced that, starting July 1st, it would impose luxury tax on certain properties which, as long as the Finance Bureau believes is a stand along building, luxurious exterior, great location and view, low residence per floor, parking spot for each unit, security and well management, then those who live there must pay luxury tax.

Taipei's s Daan, Hsinyi, Shihlin and Chungzheng districts have the most luxury condos, total 389 with more than 10,000 units.

Taxation Agency under the Ministry of Finance explained that, the luxury tax will be based on the household to street rating adjustment ratio from 120% to 320%.

For example, if a luxury condo needs to pay NT$100,000 property tax per year and the ratio is 200%, then starting next year, the tax would be increased to NT$300,000 per year.

The Agency stressed that, according to taxation laws, the taxing information can not be made publicly, thus the public will not find out which luxury condos are being forced to pay luxury tax.

Starting next year, corner shops are to be taxed more, too.

Taipei city government said that, this is just the first step in taxation reform before the future regulation of overall housing taxation regulations are enforced.