Pyeongtaek City Completes Collection of 7 Billion Won in Development Charges This Year
Pyeongtaek City (Mayor Choi Won-yong) announced that it collected a total of 7 billion won in development charges from January to July this year. Of this amount, it recovered 1.1 billion won in delinquent payments through active enforcement measures against arrears, achieving tangible results in securing local tax revenue.
The development charge is a system under which development profits gained from development projects above a certain scale are calculated and imposed on and collected from project operators and landowners. The initial payment deadline is six months, and if payment is not made within the deadline, a 3% surcharge is imposed. Thereafter, an additional monthly surcharge of 0.75% is added, increasing the burden on the taxpayer.
In response, Pyeongtaek City carried out mutually beneficial administration by implementing an ‘advance notification service for payment deadlines’ for those obligated to pay, and by providing its own in-house ‘guidance document on deferred and installment payment of development charges.’ At the same time, it seized the assets of delinquent taxpayers and set up tax collateral for deferred or installment payments, pursuing thorough debt security to recover 1.1 billion won in delinquent payments.
The city plans to further strengthen administrative sanctions against long-term and high-value delinquent taxpayers going forward to stably expand tax revenue and realize fair tax justice. It intends to fully resolve arrears by swiftly pursuing strong compulsory collection procedures along with encouragement through on-site visits.
A city official said, “We will spare no effort to provide convenience so that businesses and citizens subject to development charges do not miss their payment deadlines,” adding, “However, for long-term and high-value delinquent taxpayers, we will continue strong collection measures to prevent the leakage of the city's valuable financial resources and to thoroughly secure tax revenue.”