The Comprehensive Real Estate Tax Strengthening Bill Will Be Fully Deliberated in the National Assembly After the General Election

Discussion on Amendment Bill in Temporary National Assembly After General Election
Must Be Completed by May for This Year’s Application

Interest in Relaxation Bill for Single-Homeowners

Democratic Party candidate Choi Jae-sung (fifth from the left) is speaking about the comprehensive real estate tax reduction at a joint press conference on real estate measures held at the National Assembly Communication Hall on the morning of the 27th of last month. Photo by Yonhap News

[Asia Economy Reporter Lee Chun-hee] The comprehensive real estate tax (종합부동산세) enhancement bill included in last year's December 16 real estate measures is expected to be actively discussed in the National Assembly after the April 15 general election. Attention is focused on whether the Democratic Party's proposal for "comprehensive real estate tax relief for single-homeowners," mentioned during the election campaign, will be reflected in the bill review process.

According to the Ministry of Economy and Finance and the Democratic Party on the 14th, the National Assembly plans to review the partial amendment to the Comprehensive Real Estate Tax Act, which was jointly proposed by Representative Kim Jung-woo, the ranking member of the Planning and Finance Committee, at the extraordinary session following the general election. The amendment raises the tax rates for single-homeowners and owners of two homes outside regulated areas by 0.1 to 0.3 percentage points compared to the existing rates, and increases the rates for owners of three or more homes or two homes in regulated areas by 0.2 to 0.8 percentage points. It also includes raising the tax burden cap for owners of two homes in regulated areas from 200% to 300%.

For the comprehensive real estate tax enhancement measures to be applied starting this year as previously announced by the government, legislation must be completed by May. Since the tax base date for the comprehensive real estate tax is June 1, the bill must be passed by the end of May to apply from the 2020 tax payment. Considering that the 20th National Assembly's term has only about a month left, this extraordinary session is effectively the last opportunity to review the amendment bill.

During the review process, the Democratic Party's promise of "comprehensive real estate tax relief for single-homeowner actual users" made during the election campaign is expected to be a key issue. Earlier, Democratic Party Co-Chairman Lee Nak-yeon and Floor Leader Lee In-young verbally promised during their campaign in the Gangnam area of Seoul to "ease the comprehensive real estate tax for long-term owners who actually reside in a single home."

Chairman Lee also stated at a forum earlier this month regarding the improvement of the comprehensive real estate tax system, "Consideration is needed for single-homeowner actual users, especially those without significant income, taking into account their realities," and on the 5th, he hinted at possible policy changes by saying, "The party leadership has discussed this." Floor Leader Lee also said, "We will seek an appropriate balance and harmony between principles and realities."

However, the review of the amendment bill is expected to face difficulties. Lawmakers from the opposition United Future Party have opposed the government measures and have proposed a counter bill to lower the tax burden cap ratio for single-homeowners from 150% to 130%, and to further expand deductions for seniors aged 60 and over and long-term owners.

This content was produced with the assistance of AI translation services.