To settle the declaration system of the apartment price introduced for the balance of taxation, the level of sales price should be reflected adequately and especially, only when the level of reflecting sales prices of all apartments are flat, the equi...
To settle the declaration system of the apartment price introduced for the balance of taxation, the level of sales price should be reflected adequately and especially, only when the level of reflecting sales prices of all apartments are flat, the equilibrium of taxation can be accomplished.
As for the gap between standard declared price of apartment and sales price, since the purpose of taxation is standard declared price definitely, the gap must be generated. However, because the standard declared price is flat the taxation appears differently because of different conditions such as region or unit size and so on. This is caused by vertical inequality of the taxation.
The standard declared price or standard of assessment are standard amount for real estate taxation. The rationality of taxation depends on the reflection rate of sales price, keeping areas, size, and equilibrium, when it fails to satisfy the tax payers’ desires, the resistance for tax will be inevitable and difficult to expect the direct policy effect of real estate taxation.
The objectives of this study are to analyze the gap between the Standard declared price and sales price of apartment in A Metropolitan city, and to compare the gap between declared price and sales price. It is tried to find out problems and significant policy issues when estimating rational standard declared price and tax standards in order to ensure effectiveness and equilibrium.
In this study, the gap between standard declared price of apartment and sales price is going to be analyzed. The data of sales price traded from Jan. 1st in2006 to Sep. in 2008 in 4 gu in A metropolitan city and 1 gun announced by Ministry of Land Transport and Maritime affairs(MLTM) and standard declared price for apartments were used. So as to figure out that there are differences of apartment for each area, the standards to divide sections according to long and middle term development plans by A metropolitan city in 2021, were classified into 7 sections. According to their size, they are specified into very small, small, medium, large and 810 apartments all were extracted.
T-test according to region and unit size showed less than 0.05 in significance since equal variance by Levene's between the Standard declared price of apartment and the sales price was not supposed, the level of significance showed lower figures than 0.05. There was gap between the average of the declaring price of apartment and the sales price according to each region and unit size. However, in the variance analysis of the gap between declared price and sales price considering region, unit size, and areas at the same time the result that there is no significant average gap according to region and unit size was drawn. (Significance) level: the rate 0.05, significance possibility in regions 0.289, areas 0.073, and significance level considering regions and unit size 0.948.
There was no difference in unit size and regions in the standard declared price of apartment and the gap between declared price and sales price. However, the environment-friendly development right and the right of intensifying downtown function showed the higher gap between declared price and sales price. And the rest areas appeared lower gap in the gap between declared price and sales price. However, the gap of absolute value in whole areas was small.
And, in whole areas except large and medium size having preferential application right which doesn’t have any sample, the gap between declared price and sales price appeared higher figures and the gap between declared price and sales price according to very small, small, and medium unit sizes appeared lower.
It is possible to infer that the very small house owners pay relatively lower tax than the large house owners within the same regions such as Growth engine right for next generation, Systematic management right, and Local main industry development right.
Under the current system, the apartment standard declared prices are declared on the base of every Jan. 1st. The reflecting of system on the fluctuation of price between the basic date for actual taxation and the basic date for estimation was not ready completely, it is inferred that the Standard declared price was imposed a little more or less according to regions and unit size.
Partly, there appeared that there are some problems which should be supplemented and improved in the future, the necessity to increase the gap between declared price and sales price based on sale price is raised about apartment standard declared price.
As appeared on the results of analysis, it seems desirable that the burden of average property tax was reduced for very-small houses. However, the tax augment for large-size houses seems positive being proper result fit to government purpose which is going to raise property holding tax to prevent speculation. However, the government should try harder since the tax rate is still much less than 80% which was the previous aim.