Supreme Court rules on state property usage fee calculations

The Supreme Court ruled May 8 in case 2023Du55429 that usage fees for state property awarded through competitive bidding must be calculated using the individually announced land price from the year the bid took place. The decision resolves a legal dispute over how to interpret the term "property value at the time of bidding" when determining fees for the second year and beyond of a usage permit.

Judges reasoned that the first year's usage fee is determined by the highest bid price, which often exceeds the minimum expected price. Because the winning bid is not directly linked to the officially announced land price used to set the minimum threshold, using an older asset value as the baseline for subsequent years would distort the mechanism for adjusting fees according to annual changes in property worth.

The ruling emphasized that including property value fluctuations from periods outside the actual usage term would contradict the purpose of the enforcement decree. The court stated that any potential gaps in reflecting price increases should be addressed through legislative amendment rather than judicial interpretation.