Assemblyman Kim Gyoheung Proposes Amendment to Distribute Local Resource Facility Tax to Autonomous Districts Hosting Power Plants
Kim Gyo-heung, a member of the Democratic Party of Korea (Incheon Seo-gu Gap), announced on the 8th that he has taken the lead in proposing the "Partial Amendment to the Local Finance Act," which distributes the local resource facility tax imposed on thermal and nuclear power generation not only to cities and counties but also to autonomous districts.
The local resource facility tax imposed on thermal and nuclear power generation serves as a causative burden fee for the impact on the local area, such as air pollution and safety issues caused by power plants.
Seo-gu, where 20% of Incheon citizens live, is home to four power plants: Korea Western Power's West Incheon Power Headquarters, Korea Southern Power's New Incheon Bitdream Headquarters, Korea Midland Power's Incheon Power Headquarters, and POSCO Energy's Incheon Combined Power Plant.
Incheon City collects about 7 billion KRW annually in local resource facility tax from these power plants, but none of it is distributed to Seo-gu.
Under current law, 65% of the local resource facility tax is distributed only to the city or county where the power plant is located, excluding autonomous districts. This has raised concerns not only about fairness between cities/counties and autonomous districts but also about contradicting the original purpose of introducing the local resource facility tax.
Rep. Kim stated, "Residents of Seo-gu, Incheon, endure various disadvantages such as environmental pollution, economic damage, and threats to residents' health for the public purpose of power supply in the metropolitan area," and “We will secure an annual resident support budget of about 4.5 billion KRW by establishing a legal basis to distribute 65% of the local resource facility tax to autonomous districts where power plants are located, just like general cities and counties.”
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Meanwhile, the autonomous districts currently hosting thermal power plants include Seo-gu in Incheon, Nam-gu in Ulsan, Saha-gu in Busan, and Mapo-gu in Seoul.
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