Section 248 of the Principal Act is amended as follows:

(a) by inserting in subsection (1) "or (2A) " after " subsection (2) " ;

(b) by omitting from subsection (2) "The" and substituting "If the relevant real property is not vacant land, the" ;

(c) by omitting from subsection (2) "agreement, transfer, assignment or other instrument or dealing" and substituting "dutiable transaction" ;

(d) by inserting the following subsection after subsection (2) :

(2A)  If the relevant real property is vacant land, the unencumbered value of the relevant real property is the value calculated by multiplying the capital value of the real property as determined under the Valuation of Land Act 2001 by the adjustment factor determined by the Valuer-General under section 50A of the Valuation of Land Act 2001 and applicable as at the date of the dutiable transaction.

(e) by omitting from subsection (3) "on which the agreement, transfer, assignment or other instrument was made" and substituting "of the dutiable transaction or relevant acquisition, for the purposes of Division 3 of Part 2 of Chapter 3 ,";

(f) by inserting in subsection (3)(a) "or (2A) " after " subsection (2) ";

(g) by inserting the following subsections after subsection (4) :

(5)  A person who is liable to pay duty in respect of any instrument referred to in this section may object to the unencumbered value of the relevant real property as determined under subsection (2) or (2A) in accordance with Part 10 of the Taxation Administration Act 1997 by providing the Commissioner with a declaration by a competent valuer as to the unencumbered value of the real property.

(6)  For the purposes of this section, on receipt of an objection the Commissioner may determine the objection by –

(a) charging duty in accordance with the value of the real property as declared in the declaration of a valuer provided under subsection (5) ; or

(b) if not satisfied with the value of the real property so declared, having the property valued and charging duty on the basis of that valuation.

(7)  The Commissioner may recover the cost of a valuation obtained under subsection (6)(b) from the transferee.