Gwangju City Imposes 160.8 Billion Won in July Regular Property Tax

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Gwangju Metropolitan City imposed the regular July property tax on 659,507 cases, amounting to 160.8 billion KRW, on houses and buildings.

The number of cases and the amount imposed increased by 1.57% (12,000 cases) and 5.63% (8.569 billion KRW) respectively compared to last year's 649,307 cases and 152.2 billion KRW.

The main reasons for the increase are the rise in housing prices, large-scale new apartment constructions, and an increase in taxable properties such as buildings.

Property tax is a tax levied in July and September on the owners of properties as of June 1 each year. This July's property tax targets include houses, buildings, ships, and aircraft.

The payment period is from the 16th of this month to August 1. In the case of houses, if the principal property tax is 200,000 KRW or more, it is levied in two installments, half in July and half in September.

This year, as a temporary measure to stabilize the livelihood of ordinary citizens, the fair market value ratio for one household with one house was lowered from the current 60% to 45%.

Property tax can be paid at all financial institutions nationwide, and can also be paid non-face-to-face through electronic payment, account transfer, or credit card.

Payment methods using smartphones include the ‘Smart Wetax’ (local tax reporting, payment, and inquiry system) app or the automated response system (ARS·1899-3888). When paying via local tax revenue account transfer, transfer fees are waived even outside bank business hours.

Additionally, Gwangju City will continue to implement property tax reductions for buildings with reduced rent this year, following last year, to support small business owners struggling due to COVID-19.

The "Good Landlord" property tax reduction applies to buildings owned as of the property tax base date (June 1) where the owner has reduced rent by 10% or more for at least three months this year or has agreed to do so with small business tenants. Even if the rent reduction period is less than three months, if the average rent reduction rate is 10% or more, it is converted to three months for eligibility.

Property tax is reduced from 10% up to 75% according to the rent reduction rate, and if the reduction period exceeds three months, an additional 5% per month is added, with a maximum reduction of up to 2 million KRW.

Kim Young-hee, head of the city’s tax administration division, said, “Property tax is a valuable resource for providing beneficial administration closely connected to residents, so we ask for active payment from citizens.”

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