On the 14th, the Supreme Court ruled in favor of Seocho-gu in the lawsuit confirming the invalidity of the ordinance reducing property tax by 50%... The district highly welcomes this ruling as it recognizes and respects local fiscal authority... A total refund of about 3.5 billion KRW in district taxes is expected for 30,000 people (average 100,000 KRW per person)
[Asia Economy Reporter Jong-il Park] Seocho-gu announced on the 14th that the Supreme Court (Special 1st Division, presiding judge Park Jeong-hwa) ruled in favor of Seocho-gu in the nullification lawsuit regarding the ‘50% reduction ordinance on property tax’ filed by Seoul City against Seocho-gu in 2020, stating that it “is a very welcome ruling recognizing and respecting local financial autonomy, which is the core of local self-government.”
In 2020, during the COVID-19 disaster situation, Seocho-gu passed and promulgated an ordinance to reduce property tax by 50% for single-homeowners with a publicly announced land price of 900 million KRW or less, following the procedures and standards exercisable by the head of the local government as stipulated in the Local Tax Act.
This was in accordance with Article 111, Paragraph 3 of the Local Tax Act, which states, “If the head of a local government recognizes that adjustment of the property tax rate is inevitable due to special financial needs or disasters, the rate may be increased or decreased within 50% of the standard tax rate as prescribed by ordinance.”
However, at that time, Seoul City filed a nullification lawsuit and a suspension of execution request against Seocho-gu’s ordinance, halting the property tax reduction procedures. Meanwhile, the government and the National Assembly amended the Local Tax Act to reduce property tax rates for single-homeowners, adjusting policies in the same direction as Seocho-gu.
With the Supreme Court ruling in favor of Seocho-gu, the district intends to promptly carry out the promised property tax reduction procedures for residents.
The total expected refund amount is approximately 3.5 billion KRW in local taxes, with refunds expected to be made to about 30,000 people at an average of around 100,000 KRW per person.
Meanwhile, the Seocho-gu Council also stated that following this Supreme Court ruling in favor of the council, it will actively cooperate with related departments to ensure that the promised property tax reduction measures are implemented swiftly. The total expected refund amount is approximately 3.5 billion KRW in local taxes, with refunds expected to be made to about 30,000 people at an average of around 100,000 KRW per person.
This Supreme Court ruling is a welcome step forward in establishing autonomous legislative power for the true realization of local self-government.
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Statement from Seocho-gu
This Supreme Court ruling is a welcome step forward in establishing local financial autonomy for the realization of local self-government.
Seocho-gu’s efforts to reduce property tax to protect residents’ property rights during the unprecedented COVID-19 disaster situation were legitimate, and the Supreme Court has recognized Seocho-gu’s efforts.
Seocho-gu’s determination to reduce property tax for single-homeowners with a publicly announced price of 900 million KRW or less eventually led the government to amend the Local Tax Act, allowing such homeowners to receive up to a 50% reduction in property tax.
Going forward, Seocho-gu plans to immediately proceed with the refund process for single-homeowners with properties valued at 900 million KRW or less according to the ruling, and will expedite the refund process with the cooperation of Seoul City, the Ministry of Land, Infrastructure and Transport, and other related agencies.
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