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PSPD    People's Solidarity for Participatory Democracy

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  • 2020.03.25
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Housing prices have skyrocketed 800 million won over 13 years, but how about their taxes?

20190114_부동산공시가격 개선촉구 기자회견

 

While the price of houses have increased 800 million won over the last 13 years, the property tax has stayed at just around 1.8% (Gaepo-dong Gangnam-gu, Seoul, 2018). According to an analysis done by PSPD, the tax rate has only been applied to the government assessed price of building instead of its market value, which means significantly less tax is being collected. By going through big data of the real estate sales between October 2018 to March 2019, we also saw that property tax has been omitted on many transactions. For some reason, richer areas with expensive housing had lower publicly assessed buildings.  We cannot remain a mere spectator for this kind of inequality of taxation. There need to be policies that can gage the market value of real estate and levy taxes accordingly. Through continuous efforts by the PSPD, for the first time, the government has disclosed the assessment of real estate prices used to calculate property tax.

 

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