Jeongeup-si Promotes 'Entertainment Bar Property Tax Reduction' to Overcome COVID-19

[Jeongeup=Asia Economy Honam Reporting Headquarters Reporter Kim Jaegil] Jeongeup City, Jeonbuk Province (Mayor Yoo Jin-seop) announced on the 29th that it will promote property tax reductions for high-end entertainment establishments such as nightclubs whose operations have been banned or restricted due to the COVID-19 gathering ban order.

The city stated that the amendment to the "Local Tax Special Cases Limitation Act," which allows local governments to reduce local taxes through local ordinances or resolutions for high-end entertainment establishments (nightclubs) whose operations have been banned to prevent COVID-19 infections, was promulgated and enforced on the 8th.

Earlier, on the 24th, following the approval of the consent for the reduction of the heavy tax rate at the Jeongeup City Council regular meeting, the city began implementing property tax reductions for high-end entertainment establishments subject to the heavy tax rate.

The property tax assessment date was the 1st of this month, with building tax to be levied and notified next month, and land tax scheduled for notification in September.

This year’s tax rate for high-end entertainment establishments such as nightclubs will change from the existing heavy tax rate of 4% to a general tax rate of 0.25% for the building portion of the property tax.

The land portion of the property tax will be significantly reduced from 4% to 0.2%.

However, businesses that violate the business suspension orders due to infectious disease outbreaks by operating illegally or violating quarantine rules will be excluded from the tax reduction.

The city expects that this heavy tax reduction will greatly reduce the burden on entertainment business owners, projecting a reduction of approximately 163 million KRW for a total of 76 cases.

A city official said, “It is expected that the burden of local tax payments for owners of high-end entertainment establishments such as nightclubs, who have been pushed into serious management crises due to prolonged COVID-19 restrictions and decreased sales, will be alleviated.”

Meanwhile, the heavy tax rate on nightclubs has been imposed since the 1970s to suppress extravagance and wasteful trends, and recently, as business losses have accumulated due to national quarantine policies and management difficulties have worsened, the National Assembly has established the legal basis for tax reduction benefits.

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