ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

A Study on the Regional Equity of Property Tax Burden on the Houses

  • Tae Hwa Yoon Kyungwon University
  • Yang, Gi Cheol Kyungwon University

Asian Tax Journal Vol. 12 No. 2 (2011), pp. 351-382

Abstract

This study empirically analyzed the difference of the declared value ratio and the property tax burden ratio of houses between the north and the south area in Seoul. We gathered 2,939 house sample data on the Gangnam－gu and Dobong－gu for three years 2008－2010 and analyzed the difference of the ratios, classified on types, amounts, and sizes. The empirical results are as follows. First, the declared value ratio and the property tax burden ratio of the south area houses are significantly higher than those of the north area. Secondly, the declared value ratio of the south area houses are higher than that of the north area in all types of houses. The south area declared value ratio in the range of the lower declared values are higher than the north area's, but there is no the significant difference of the declared value ratio between the north and the south area in the range of the higher declared values. The property tax burden ratio of the south area was significantly higher than that of north area in all range of values due to the progressive tax rate structure of the property tax on houses. Thirdly, the south area's declared value ratio is higher than the north's in the small and midium size houses, and there is no significant difference of the declared value ratio between the north and the south area in the midium and large size houses. The property tax burden ratio of the south area is significantly higher than that of north area in all range of sizes. We think that this is due to fact that there are higher value houses in the south area than in the north area of the same size. Fourth, there is significant difference in the declared value ratio and property tax burden ratio of houses between the north and south area since 2008 because there is no significant change in the declared value ratio and property tax burden ratio of houses. Consequently the declared value ratio and property tax burden ratio of houses of the south area are higher than those of the north area, which means that there is the progressiveness rather than the regressiveness in the property tax on houses which is the opposite of the prior research result. This result suggests that the declared valuing should be improved for the equity of property tax burden, independent to the progressive tax rate system.

Keywords

  • declared value ratio
  • property tax buren ratio
  • market value
  • declared value on houses
  • property tax

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Asian Tax Journal

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