Tax Tribunal: "Property Tax Should Be Based on the Actual Final Payment Date"

An interpretation has emerged that property tax should be based on the actual payment date of the balance, not the contractual balance payment date.

According to the Tax Tribunal on the 27th, Mr. A signed a housing sales contract in January 2021 and agreed to pay the balance on May 31. However, the payment of the sales price was delayed, and the balance was finally paid on June 3. The reference date for levying property tax was June 1, and Mr. A was taxed on the grounds that he was the owner of the house according to the contract. Mr. A filed an appeal, arguing that since the actual balance payment was made on June 3, he should not be subject to property tax.

The tribunal ruled, "Mr. A should be regarded as having acquired the house on the actual balance payment date (June 3)," and judged that "it was wrong to impose property tax by considering him the owner of the house as of June 1." It further explained, "Although the acquisition report was based on the sales contract, the contract was not amended, so the report was made according to the contracted terms," and "It has been clearly proven that the balance was paid on June 3."

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