“Why Seocho-gu … we also ask for a property tax reduction” -Maeil Economy

A, who lives in a single apartment complex near Seocho Station in Seocho-gu, had to pay about 1 million won in property taxes this year, when the publicly announced price rose to a low of 700 million won. (about 1.3 billion won). Since the publicly advertised price of land has risen roughly 1.7 times over the past four years, the property tax has also risen by that much. Mr. A complained: “I am not a multi-dwelling person, but I lived in one place all the time with one house, but the tax has increased significantly.” When protests came from Seocho-gu residents, Seocho-gu announced on the 25th that it would cut half the property tax that the district office must take (50% of the total property tax), or 25% of the property tax paid. Mr. A, who has already paid the property tax, will receive a refund of about 250,000 won later this year.

Seocho-gu’s Seoul office is the first of 226 local governments across the country to implement a ‘property tax discount’ for a home and owner. The government’s real estate policy was aimed at people with multiple households in a situation where the economic difficulties of the corona 19 outbreak were already intensifying.

According to the Seocho-gu Office on the 25th, the ‘Seocho-gu Salvation Ordinance Partial Amendment Ordinance’, aimed at reducing the property tax burden for a home and owner, passed the plenary session of the district meeting that day. Among the 25 autonomous districts of Seoul, only Seocho-gu has established a legal basis for reducing property taxes. The proposed ordinance states that half of the old property tax (half of the total property tax) will be refunded within the year for an owner of less than 900 million won (standard market price for officetel). Seocho-gu homeowners who meet the conditions will be able to receive a 25% refund of property tax paid in July and September within this year.

Seocho-gu said that 69,145 households, representing about half (50.3%) of the total 137,442 households in the facility, have a disclosure target of less than 900 million won. However, it is not possible to estimate how many of them are eligible for a house for a home, so separate data have been requested from the Ministry of Land, Infrastructure and Transport. An official from Seocho-gu’s office explained: “Excluding people with multiple households, the number of households receiving benefits is estimated to be 50,000.” The refund amount is estimated at a few thousand won up to a maximum of 450,000 won, and the average is estimated at around 100,000 won.

The reason why Seocho-gu benefited a home and owner (less than 900 million won) is to protect the good home and owner regardless of real estate speculation and investment. However, among the 25 autonomous districts of Seoul, only Seocho-gu is expected to ignite the controversy over equity, as only Seocho-gu offers a reduction in property tax for an owner. This is because there are several other autonomous districts besides Seocho-gu, where the published price soared this year. According to the Ministry of Land, Infrastructure and Transport, the rate of increase of apartment buildings in Gangnam-gu this year was 25.53%, higher than that of Seocho-gu (22.56%). A household and an owner living in a house with less than 900 million won are protesting, “Why does Seocho-gu only give property tax refund benefits and we discriminate without giving them?” The other 24 autonomous districts in Seoul are in a position to observe the situation and say, “If the property tax rate is lowered in the crown situation, the local government’s ability to support the vulnerable will be weakened.” These autonomous regions added that the government announced that it would announce a plan to reduce the property tax rate for a low to mid-priced home in October, so let’s wait. However, there is criticism that these 24 autonomous districts are affiliated with the Democratic Party, so they do not know the government more than the neighbors.

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