[Annual Report 2019] Housing prices have skyrocketed 800 million won over 13 years, but how about their taxes?
- About PSPD
- 2020.03.25 (21:28:16)
Housing prices have skyrocketed 800 million won over 13 years, but how about their taxes?
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.
- 01/24 [Press Conference] We urge for an Improvement in Assessed Price to Redeem Unearned Income
- 01/17 [Issue Report] Real estate posted price, there needs to be a more active realization policy
- 04/04 [Press Conference] Undervalued posted price, preferential property tax from it amounts to 4 trillion won per year
- 10/07 [Issue Report] High Priced Houses’ low posted price, the seriousness lingers
- 12/09 [Issue Report] Apartments of Seoul in 2018-19, comprehensive real estate tax burden increase compared to market price increase only marks 0.8%