Gyeonggi Province Imposes 2.83 Trillion Won in Property Tax for July Regular Assessment

[Suwon Ilbo=Park No-hun Reporter] Gyeonggi Province assessed 2.83 trillion won in property tax for the July regular assessment of 2021.

This represents an increase of 233.7 billion won (9.0%) compared to the previous year.

Property tax is the tax obligation of real estate owners as of the tax assessment date (June 1 each year).

Tax is levied on buildings, ships, and aircraft in July, and on land in September, while residential properties are assessed with one-half each in July and September.

By tax category, property tax increased by 29.9 billion won (2.7%), urban area property tax (formerly urban planning tax) by 156.2 billion won (18.2%), regional resource facility tax by 41.7 billion won (10.5%), and local education tax by 6 billion won (2.7%).

By city and county, Seongnam City ranks first in property tax assessment amount (369.1 billion won), and Gwacheon City shows the highest increase rate (52.7%).

The increase in assessed amounts compared to the previous year is analyzed as resulting from the rise in residential property official prices following the implementation of the real estate official price realization plan by the Ministry of Land, Infrastructure and Transport and the Ministry of the Interior and Safety last year to ensure official prices reflect appropriate market prices.

Additionally, the province explained that there were various factors, including increased numbers of newly constructed residential properties and buildings through land development in new towns throughout the province, and simultaneously rising new building construction prices.

Accordingly, for single-household homeowners holding residential properties valued at 900 million won or less, a special tax rate lowered by 0.05 percentage points in each progressive tax bracket was applied to ease tax burden, resulting in tax relief of 184.1 billion won for residents in the province.

A "single-household homeowner" refers to a case where one household consisting of a family registered together in the household registry owns one residential property.

Spouses and unmarried minor children are considered as the same household regardless of household registry, and cases where parents aged 65 or older are supported while living together are excluded as independent households.

Additionally, those owning multiple properties such as residential properties for sale, unsold properties, debt-settlement properties, inherited properties, or properties owned before marriage must apply for exclusion of the number of housing units by October 31 through We-tax (www.wetax.go.kr) or the tax administration department of the city or county where the property is located in order to receive the single-household homeowner special tax rate.

The property tax payment period is from the 16th to the 31st, but due to weekends falling within this period, it has been extended to August 2.

If payment is not made by the deadline, a 3% additional charge (one time) and 0.75% penalty interest (maximum 60 months) may be imposed, so payment must be made by the deadline.

Payment can be made through national banks (automatic teller machines and public utility payment terminals), the We-tax website, or alternatively through the mobile We-tax app, mobile apps of financial institutions, virtual accounts, etc. If using the "local tax account (electronic payment number)" shown on the notice, payment can be made free of transfer fees.