Jeongeup-si Promotes Building Property Tax Reduction for Good Landlords

[Asia Economy Honam Reporting Headquarters Reporter Kim Jaegil] Jeongeup City, Jeonbuk Province, announced on the 2nd that it will promote a reduction in building property tax for benevolent landlords who lowered rent to support small business owners facing economic difficulties due to the prolonged COVID-19 pandemic.

The "Benevolent Landlord Movement" is a measure to help landlords voluntarily reduce rent to receive tax benefits, enabling small business tenants experiencing decreased sales to have a stepping stone for recovery.

Following the approval of Jeongeup City’s tax reduction consent for landlords who lowered rent by the city council, the city has started accepting applications for building property tax reduction from this day.

The eligible landlords are those who reduced rent by 10% or more on average over three months for tenants such as small business owners from July last year to June this year.

The reduction rate will be applied differentially according to the actual rent reduction rate, with plans to reduce from 20% up to a maximum of 50%.

Accordingly, if the average rent reduction rate over three months is 40% or more, a 50% reduction rate will be applied, and if the reduction rate is 30% or more, a 40% reduction rate will be applied.

However, golf courses or high-end entertainment establishments are excluded according to relevant laws, and cases where the landlord and tenant are spouses or direct lineal ascendants or descendants are also excluded.

The application documents include the local tax reduction application form, lease contracts before and after the rent change, tax invoices, bank transfer statements, and other documents that can prove the rent reduction.

Applications can be submitted to the town or township office, the dong community service center, or the city tax administration department, and applications will be accepted continuously until the end of June.

Mayor Yoo Jinseop said, “I hope this will be of some help to citizens and small business owners who are experiencing economic difficulties due to the prolonged COVID-19 pandemic,” and added, “We will continue to actively discover and implement various policies that citizens can empathize with to improve their lives and recover the local economy.”