A Survey Research of the Real Estate Holding Tax System
Asian Tax Journal Vol. 9 No. 4 (2008), pp. 285-317
Abstract
The property market in Korea has its importance much higher than that of other countries owing to the scarcity coming from a narrow national land compared with the population. It is well known that the enactment of tax law has been made superficially for the purpose of securing the tax revenues to meet the financial demand of the government, but real estate taxation has been really used for political objectives such as the stability of property price and the control of speculation and the elevation of the efficiency of the use etc. Therefore, in this research we have arranged the summary of the property holding tax and examined the matters of the property holding tax in Korea by dividing into the reality of the tax standard, the problems of tax exemption and deduction, those of the taxing date and the legal obligation to pay one's taxes, the unconstitutionality of 2－tier real estate taxation and those of taxation rights, and further suggested the methods for the promotion. In addition, in order to survey the recognition of the public regarding the property holding tax, we surveyed the cognizance of the residents in Seoul and the Metropolitan area such as the survey of the recognition regarding the real estate holding taxes, that of the recognition of the property tax, that of the recognition concerning 2－tier real estate taxation, the function, and executed the survey of the function and effect of the 2－tier real estate taxation on the economy and society and analyzed its results. Results of the study are as follows. First, there appeared a strong negative viewpoint against the holders of lots of properties, and the survey showed that people still wanted to keep a high tax rate in the question regarding 'the reduction of a high tax rate(4%) as to golf courses and recreation construction buildings, and it showed that the gap between the declared price and the transaction price and the arguments over the unconstitutionality of the 2－tier real estate taxation were the significant problems. Second, in the question regarding the function and the effect of the 2－tier real estate taxation upon the overall economy and society, the survey showed that there was no great effect considering the arguments in time of its enactment.
Keywords
- real estate holding tax system
- property tax
- comprehensive real estate tax
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