Siam Shifts Property Tax Burden from Homes to Commercial Buildings

The Siam City Council adopted revisions to the Property Rates Ordinance on July 2 that freeze residential assessments for properties under 200 square metres and raise the levy on commercial sites with annual turnover above 5 million baht by 12 per cent.

The changes respond to a 38 million baht shortfall recorded in the council's 2025 financial statements, which showed declining revenue from tourism-related fees after visitor numbers fell 9 per cent last year.

Effects on Households and Businesses

Residents in Siam's older residential zones such as the riverside wards will see their average quarterly rates notice drop by 1,150 baht, freeing funds that some households previously used for utility top-ups. Market stall holders and small retailers in the central commercial strip will instead receive notices that add roughly 8,400 baht per year, a figure drawn directly from the council's rate modelling tables published alongside the ordinance.

Policy analysts note that the ordinance directs the new revenue toward the existing public housing maintenance fund rather than new capital projects, so existing tenants in the 1,120 council-owned units stand to benefit from faster repairs while new applicants remain on the same waiting list length of 14 months.

Implementation Timeline

Billing under the revised schedule begins with the August quarter, and the legislation provides a 60-day window for property owners to lodge valuation objections with the council's assessment office. The government projects that 2,350 commercial properties will be affected and 47,800 residential accounts will receive the rebate adjustment, according to figures in Budget Paper No. 4 released on July 3.