Home Business Myeong-dong, an empty shopping mall, owners cry over the tax… “The government would rather buy it.”

Myeong-dong, an empty shopping mall, owners cry over the tax… “The government would rather buy it.”

by news dir

This year, for the first time in history, the number of people who have to pay the comprehensive real estate tax for housing and land has exceeded 1 million. According to the ‘Status of Land Tax Notification on Land Shares’ announced on the 24th by the National Tax Service, the number of people who own land and have to pay tax on land was 79,600, an increase of 3.2% in one year. The tax they have to pay was 2.889 trillion won, a 17.7% increase over the same period.

Considering the fact that 947,000 people have paid the property tax for housing this year, the total number of property tax payers including housing and land is 1,026,600, which broke the 1 million mark for the first time since the introduction of the property tax in 2005, a record high.

In major commercial districts, store owners are weeping after accepting the tax bill. Mr. A, the owner of a commercial building in Myeong-dong, said, “I asked the tax authorities to wait until the building is sold,” he said.

Mr. A was afraid to open the tax bill levied on land. The property tax, which was in the 20 million won range just two years ago, jumped to 50 million won last year. This year, I received a bill of 70,000 won. Separately aggregated land, such as land attached to shopping malls and factories, is levied on land with an official land price of 8 billion won or more. The property tax for land levied on Mr. A this year is 149.7 million won, and when combined with the tax imposed this time, the tax to be paid within the year alone reaches 220 million won.

Until last year, the total amount of property tax and property tax for land was 70 million won, so the tax burden was not too large. However, due to the stagnation of the Myeong-dong commercial area due to Corona 19, the monthly rent has recently been lowered to one-tenth, and the tax has also tripled, so Mr. A decided to sell it. The owner of the other floor of Mr. A’s commercial building, which is vacant, has to pay hundreds of millions of won in taxes without rental income.

In fact, the official land price of Myeong-dong has risen sharply since the administration. The official price of the land where Mr. A’s building was located was 87 million won per square meter until 2018. It more than doubled to 170 million won in 2019, followed by 190 million won this year, approaching 200 million won per square meter. In the past three years alone, the rate of increase has reached 119%.

The surge in publicly announced prices is a phenomenon that is happening all over the country. This year, the rate of increase in the official land price based on standard paper was 10.37%, a new high in 14 years since 2007. By province and province, Sejong 12.38%, Seoul 11.41%, Gwangju 11.39%, and Busan 11.08% showed double-digit increases this year.

The rate of increase in the national official land price is higher than the rate of increase in land prices. The rate of increase of the national standard land price announced in January of this year (10.37%) is nearly three times the rate of change of the land price determined by the Korea Real Estate Agency of 3.68%. The Ministry of Land, Infrastructure and Transport announced the realization of the announced real estate price last year and announced that it would raise the official price to 90% of the market price (the realization rate of the official price) by 2028. considered crazy In addition, the fair market value ratio, which is the ratio that reflects the official price when calculating the property tax, was greatly affected by the increase from 90% to 95%.

This year, the number of people paying tax on housing and land has exceeded 1 million for the first time in history, and tax revenue is expected to increase significantly. The tax payable by those subject to the property tax on housing and land was 8,568.1 billion won, a record high. Compared to last year’s tax amount of 4.26 trillion won, it doubled. As the number of taxpayers exceeds 1 million, the tax that will roll into the national treasury this year is expected to increase by up to 33% more than the government forecast.

Woo Byung-tak, head of Shinhan Bank’s Real Estate Advisory Center, said, “In areas such as Myeong-dong, where the official land price reflects the market price quickly, the tax burden on land is growing, even though there are ups and downs in the commercial districts due to Corona 19.”

[유준호 기자 / 김정환 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]

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