Catholic Priest's 'Gangnam Apartment' Residence... Court Rules "No Property Tax Payment Required"

The court has ruled that the clergy residence provided to Catholic special pastoral priests conducting pastoral activities outside the cathedral is not subject to property tax.

On the 11th, the Seoul Administrative Court, Administrative Division 3 (Judge Seo Ji-won), recently ruled in favor of the plaintiff in a lawsuit filed by the Foundation of the Catholic Archdiocese of Seoul Maintenance Foundation against the Gangnam District Office of Seoul, seeking cancellation of property tax and other imposed charges, according to a report by Yonhap News on the same day.

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The Catholic Archdiocese of Seoul purchased an entire apartment building in Gangnam-gu, Seoul, in 2019, consisting of 2 basement floors and 12 above-ground floors (a total of 19 units). The diocese then remodeled the space for religious activities. The first floor, previously a communal facility for residents, was converted into a chapel (a worship place for a specific community), the second floor into a dining hall and laundry room, and the third floor into a fitness center and lounge.

The remaining spaces were all used as residences for priests. Special pastoral priests affiliated with the foundation used four units, while the remaining units were occupied by retired priests or special pastoral priests on leave. Special pastoral priests refer to priests who, unlike parish pastoral priests who mainly work at the parish and reside in the rectory, engage in missionary activities targeting specific groups or fields such as youth, the elderly, and hospitals. It is common for special pastoral priests to rotate duties according to personnel assignments.

In July 2022, Gangnam District Office claimed that the apartment was subject to taxation and demanded property tax. The diocese opposed this, arguing that imposing property tax on the four units occupied by special pastoral priests was unjust. After the diocese’s appeal to the Tax Tribunal was dismissed, they ultimately filed a lawsuit. The diocese claimed that the apartment was "provided as residences for special pastoral priests who hold an indispensable and central position in religious business activities" and therefore "legally exempt from taxation." Article 50, Paragraph 2 of the Local Tax Special Cases Act stipulates that "property tax is exempted for real estate directly used for the relevant business by religious organizations or hyanggyo (Confucian academies) as of the tax base date."

The court ruled in favor of the diocese. The court explained, "Special pastoral priests, like parish pastoral priests, engage in activities to propagate Catholic teachings and doctrines" and "play an indispensable and central role in religious activities." Furthermore, the court stated, "Special pastoral priests reside while practicing religious life, including offering daily Mass at the chapel located on the first floor of the apartment," and added, "It is reasonable to view this not merely as a place for daily living but as a place where a religious community is formed and collective religious life is practiced," thus justifying the cancellation of the property tax imposition.

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