ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

A Study For Improving Some Problems about Local Tax Reduction for Rural Areas Housing

  • Chung, Ji-Sun University of Seoul Graduate School of Taxation

Asian Tax Journal Vol. 14 No. 2 (2013), pp. 281-310

Abstract

Recently, in order to resolve regional disparities due to the rapid aging and decreasing of the rural population, it is necessary to provide incentives for the ‘return to farm’ or ‘return home’ population to move to the rural. It is urgent to resolve the problem of housing for the aging population in terms of life safety or welfare. This study examined the solution of these problems in terms of the local tax reductions. Population of return to farm increased sharply since 2009, it is due to the retirement of the baby boomer generation, the pursuit of rural life, the enable policy of national and local governments. The status of local tax reduction for the Rural housing are as follows. Acquisition tax and property tax reduction is provided with certain requirements of acquisition；rural housing construction or improvement projects. The current system has some problems that destination of the reduction is very narrow and it is difficult to get properly applied. But, there is no reason to restrict the destination of reduction. On the other hand, Japan's Fixed property tax reductions are as follows；reduction for new housing, reduction for the long－term blue chip housing, reduction for earthquake improvement, reduction for improvement of people with disabilities and the elderly, reduction for energy saving improvement. We might reference reductions of such ‘reduction for new housing, reduction for the long－term blue chip housing, reduction for improvement of the elderly’. Problems and Improvement Plan of this study are as follows. First, the tax benefits associated with the construction of new villages, the gap between the local tax policy and the New Village Development projects act as barriers. So we proposed legislative improvements to reflect these problems. Second, in the case of rural homeowners individually improve the housing, it is difficult to receive the acquisition tax and property tax reductions. So we proposed legislative improvements to reflect these problems.

Keywords

  • return to farm
  • return home
  • rural areas housing
  • acquisition tax
  • property tax
  • local tax reduction

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