재산보유과세의 개편에 관한 연구 = A Study on the Improvement of the Land and Building Property Tax

다국어 초록 (Multilingual Abstract)

The purpose of this study is to examine the horizontal equity of the property tax burden among apartment dwelling units, and to propose better systems for the property tax. Not like other countries, the Korean property tax system is divided into two parts: land and buildings. The tax base and the tax rate of the land and buildings are based on two completely different assessment methods and systems. Although the land is assessed by the market value, the building is assessed by the reconstruction cost along with depreciation factors. In addition, both tax rate systems are progressive, but the tax rate of the building is much higher than the same tax base of the land. The different tax rates of the property cause different tax burdens depending on the structure of the property.
As the apartment type of dwelling units have increased rapidly, the assessment method of the property needs to be reconsidered. The current reconstruction cost in the assessment method for the building may be appropriate for a single dwelling unit. However, the ratio of apartment type dwelling units is about over 60% these days. The current system for the building has a limitation in reflecting the apartment value. For instance, those who have a small yet high-valued apartment pay less building property tax than those who have a big but low-valued apartment.
Therefore, this study proposes how to achieve the horizontal equity of the property tax burden for the land and the building. First, applying the same tax rate for the land and the building property is proposed. Second, unifying the tax base between the land and the building is recommended. In addition, this study proposes to introduce the market price factor into the building property tax assessment procedure.