Kwon Ik-wi Commission: "Imposing Property Tax on Public-Use Private Land is Illegal... Local Governments Should Purchase"

"Property Tax Should Not Be Imposed on Communal or Public Property for Over One Year"

[Sejong=Asia Economy Reporter Moon Chaeseok] It has been ruled that imposing property tax on land used for public purposes, where the exercise of property rights is restricted, is illegal.

The Anti-Corruption and Civil Rights Commission recommended to Mokpo City on the 1st that "it is desirable for Mokpo City to purchase privately owned land that has been designated as scenic green space and used for a long time since 1991," and "refund the property tax levied for the past five years and refrain from imposing property tax until the land is purchased."

In 1991, during the Hadang District housing development process, Mokpo City received written pledges from the original landowners stating that they would not raise any objections to the restriction of property rights on the scenic green space areas. Subsequently, the land was reallocated without reducing its area. The land was divided into 24 parcels, of which Mokpo City owns 16 parcels through donation (2 parcels) and purchase (14 parcels), but 8 parcels remain privately owned.

Mokpo City argues that since the land is provided for public use and the use and profit rights are restricted, and the applicants clearly recognized this when purchasing, it is difficult to purchase the privately owned land used as urban planning facilities.

The Anti-Corruption and Civil Rights Commission acknowledged Mokpo City's claim that it is lawful not to purchase the land if the owners voluntarily submitted written pledges to waive their use and profit rights, considering Supreme Court precedents. However, it judged that the land subject to urban planning facilities should be owned by the state or local government, and considering the relationship with nearby lands comprehensively, it is desirable for Mokpo City to purchase the land.

Since the land is used as scenic green space, imposing property tax on it is illegal under Article 109 (Non-taxation) Paragraph 2 of the Local Tax Act. This law stipulates that property tax shall not be imposed on property used for public or official purposes by the state, local governments, or local government associations for more than one year.

An Junho, Director of the Grievance Handling Bureau at the Anti-Corruption and Civil Rights Commission, said, "Regarding privately owned land provided for public use, the decision to purchase should be made comprehensively considering ownership acquisition relations, the location and shape of the land, and its relationship with other lands," adding, "It is the state's duty to take measures to minimize unreasonable aspects for the public."

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