Gyeonggi-do Imposes 5.3869 Trillion Won in Property Taxes

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province imposed 5.3 trillion won in property tax this year. This amount is an 11% increase compared to the previous year.

On the 22nd, Gyeonggi Province announced that it imposed 5.3869 trillion won in regular property taxes for July and September this year, an increase of 11.1% (539.4 billion won) compared to last year.

The local governments with the highest property tax amounts imposed are Seongnam City (565.2 billion won), Yongin City (502.7 billion won), and Hwaseong City (459.3 billion won) in that order. The areas with the highest property tax increase rates compared to the previous year are Gwangmyeong City (17.3%), Osan City (17.2%), and Hanam City (15.8%).

The province explained that various factors contributed to the increase in property tax amounts, including land price rises due to large-scale housing site developments such as public housing districts and an increase in taxable houses due to new constructions.

Additionally, the official housing price, which is the tax base for property tax, rose by 23.2% for apartment complexes and 6.53% for individual houses, and the official land price increased by 9.6%, which also influenced the increase in the imposed amount.

In response to the rise in official housing prices, to curb the increased tax burden on single-home real demand owners, the government temporarily lowered the housing fair market value ratio from 60% to 45% this year in June.

The housing portion of the property tax uses the amount obtained by multiplying the official price by the fair market value ratio as the tax base. Also, since last year, a special tax rate has been applied to houses with an official price of 900 million won or less, allowing up to a 50% overlapping reduction, effectively reducing the tax burden for single-home households.

Accordingly, it was identified that 2.54 million single-home households in the province (51.7% of the total 4.9 million houses) benefited from a tax reduction of 227.5 billion won due to the fair market value ratio reduction and an additional 172.3 billion won reduction from the special tax rate applied to houses priced at 900 million won or less, totaling a tax relief of 399.8 billion won.

Choi Won-sam, head of the provincial tax administration division, said, "We will continue to closely monitor housing price trends and do our best to ensure the stable operation and improvement of the property tax system." Property tax is imposed in two installments in July and September on owners of taxable properties as of the tax base date, June 1 each year.

In July, property tax is imposed on half of the houses and on buildings, aircraft, and ships, while in September, it is imposed on land and the remaining half of the houses.

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