Input 2021.03.17 16:50 | Revision 2021.03.17 19:29
Lee Hae-sik (Seoul Gangdong-eul) and Democratic Party lawmaker responded by the government’s announcement of an increase in the publicly announced price of all-in-one apartment houses (apartment alliances) on the 17th, when the property tax bomb controversy erupted. Congressman Lee said on Facebook that day, “the power of the people and some media are raging about’tax bombs’, but the rate of reflecting the publicly announced price of the city generation cost is only 1.2%.”
◇ 與 “Continue to realize real estate listed prices”
As public price checks started this year, complaints about “a tax bomb hit” are pouring out across the country, but the government’s ruling party insists that it is “the process of real estate normalization.” Kim Tae-nyeon, acting representative of the Democratic Party’s party, said at the party’s in-house countermeasure meeting the day before (the 16th) that the tax bomb controversy was “generalized by over-inflating the special cases of multi-homed people and expensive houses in the Gangnam area.”
“It is natural that the public price of real estate is linked with the market price,” said Daejeon. “The government will promote the realization of all real estate official prices up to 90% of the market price by 2030.” Democratic Party Rep. So Byung-hoon, a member of the National Assembly’s National Land Transport Commission, said on Facebook the day before, “If the public announcement is less than 600 million won, the ownership tax will be lower than last year.”
The ruling party’s logic is that it is true that the government’s public price has been significantly increased, but it is argued that the tax burden on most single-owners will not increase since last year’s property tax was cut on houses under 600 million won. It also supports their logic that 9 out of 10 houses nationwide are less than 600 million won.
However, apartments that were removed from property tax reduction targets (less than 600 million won) continued to appear in the Gangbuk area of Seoul due to the increase in public prices. As of this year, 29.4% of apartments in Seoul exceeded the official price of 600 million won. Compared to last year’s 20.8%, it increased by almost 9 percentage points. This year, the public price increase rate is 19.08% on average, and the public price for apartments in the Seoul metropolitan area reaches 19.8%.
◇ Tax 硏 “If you are taxed, sell your house and go out”
The real estate industry was concerned that “even if the property tax is reduced or exempted, the burden on the ownership tax will increase sharply if the publicly announced price rises in this trend.” Considering the ratio of multi-homed people (around 16% as of 2018), the tax burden is further increased.
However, the government’s position is stubborn. In an interview with Chosun Biz last month, Director Kim Yoo-chan of the Korea Institute for Taxation and Finance said, “If the tax burden is difficult (due to an increase in the holding tax), such a person should (from that house) go out.” Director Kim said, “Some people bought cheaply in the past, but now the house price has risen. (In such a case) there is no need to live in that house now. The ownership tax is the effective tax rate, which is what the government puts on the economic capacity.”
In response to the ruling party’s logic, Rep. Yoon Hee-suk said, “Even if the price of the house where you live increases, you have to pay the tax as income, so unless your income increases quickly, you can adjust the speed when reflecting the rise in asset prices in the tax to alleviate the shock. “It is the basic of tax policy that should be done,” he said. “The public has raised the price of real estate and the public announcement price has increased, driving the people who say the real estate tax is overwhelming to’people who are whining even though their assets have increased.'”
Ho-young Joo, the head of the hospital, said at the in-hospital countermeasures meeting the day before (16th), “I took 25 real estate measures, but the house price skyrocketed and it was a tax bomb in the jeonse riot.” “I was going to catch real estate, and was it the house price or the people?” said Jun-young Bae, a spokesman for the power of the people. “When the innocent people were hit by a tax bomb and even said,’I raised the house price to increase tax revenue’, the explanation I gave was only 6 One homeowner with less than 100 million won said, “I’m sick of cutting the side” that the property tax is reduced or exempted.