Gyeonggi-do Accepts Objections to Standard Market Value of Buildings

Gyeonggi-do Gwanggyo New Government Building

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will disclose the standard market value of buildings through the local tax information system (WETAX) before deciding this year's standard market value of buildings, and will listen to the opinions of owners and stakeholders.

The standard market value is the appropriate value of a building determined by reflecting individual characteristics such as the structure and use of the building according to the standards set by the Minister of the Ministry of the Interior and Safety. It serves as the basis for local tax assessment standards such as acquisition tax and property tax.

The opinion hearing is due to the establishment of the Enforcement Decree of the Local Tax Act, which stipulates that from this year, building owners or stakeholders can submit opinions on the calculated standard market value.

Previously, local governments uniformly calculated and decided the standard market value, but from this year, the standard market value will be disclosed so that owners or stakeholders can directly check it, and the owners' opinions on the calculation details must be heard before making a decision.

The disclosure targets are officetels and non-residential buildings registered in the local tax ledger as of January 1 of this year. The value may change if individual matters such as change of use are modified or after the 2023 individual official land price is announced.

The types of opinion submissions consist of four categories: excessive increase rate compared to the previous year or transaction price, fairness with nearby similar buildings, and changes in factual circumstances. If taxpayers judge that a change in the standard market value is necessary, they must specify the detailed reasons and attach supporting documents.

Submitted opinions will be investigated for validity such as the appropriateness of the value, and the building standard market value reflecting this will be approved by the governor and decided through the local tax review committee of each city and county by June 1.

The final standard market value will be the tax base for property tax (buildings) and acquisition tax imposed in July. It will also be used as a calculation standard in various fields such as national health insurance premium imposition data.

The building standard market value can be checked by visiting the tax department of the relevant city or county or through WETAX. Building owners and stakeholders who have objections to the standard market value can submit their opinions directly to the city or county tax department by the end of this month, or submit them by fax or mail.

Choi Won-sam, head of the provincial tax administration division, urged, "Since building standard market value, which is an important basis for local tax imposition, now provides owners with an opportunity to submit opinions before determination, please actively utilize the newly established system by reviewing whether the disclosed standard market value is appropriate."