Abstract
The decline in population due to severe low birth rates and outward migration trends, such as urbanization, has led to a growing concern of depopulation and potential population extinction, particularly prominent in rural areas. As the population dwindles, the proportion of vacant houses has surged, further exacerbating the challenges associated with depopulation.
To address these issues, this study suggests a comprehensive proposal for restructuring the tax system as a means to stimulate the activation of vacant housing in rural areas. The proposed improvements include the following key points：Firstly, easing transaction taxes while enhancing holding taxes for vacant properties is suggested. This involves reducing acquisition taxes for vacant properties designated under the rural housing improvement program. Furthermore, provisions allowing the substitution of rural housing acquisitions and exempting income taxes on property transfer for vacant rural housing are introduced. Additionally, a separate consolidated taxation scheme is recommended for land property taxes during the three years following demolition, contingent on satisfying specific conditions. In cases of compulsory demolition, compulsory demolition fees and comprehensive consolidated land property taxes are applied in tandem. Secondly, expanding the scope of rural housing definition is imperative. Adjusting the current valuation thresholds of rural housing in line with market realities and extending its coverage beyond rural locations to areas designated as facing population extinction crises by the government are necessary steps. Thirdly, introducing a comprehensive framework for secondary properties, particularly vacation homes, is essential. Rationalizing criteria such as price and dimensions, while downsizing properties subject to excessive taxation on acquisition and property ownership, can serve as an effective incentive for population influx into rural regions.
The results of this study provide a foundation for reevaluating the tax structure from the perspective of promoting vacant housing activation.
To address these issues, this study suggests a comprehensive proposal for restructuring the tax system as a means to stimulate the activation of vacant housing in rural areas. The proposed improvements include the following key points：Firstly, easing transaction taxes while enhancing holding taxes for vacant properties is suggested. This involves reducing acquisition taxes for vacant properties designated under the rural housing improvement program. Furthermore, provisions allowing the substitution of rural housing acquisitions and exempting income taxes on property transfer for vacant rural housing are introduced. Additionally, a separate consolidated taxation scheme is recommended for land property taxes during the three years following demolition, contingent on satisfying specific conditions. In cases of compulsory demolition, compulsory demolition fees and comprehensive consolidated land property taxes are applied in tandem. Secondly, expanding the scope of rural housing definition is imperative. Adjusting the current valuation thresholds of rural housing in line with market realities and extending its coverage beyond rural locations to areas designated as facing population extinction crises by the government are necessary steps. Thirdly, introducing a comprehensive framework for secondary properties, particularly vacation homes, is essential. Rationalizing criteria such as price and dimensions, while downsizing properties subject to excessive taxation on acquisition and property ownership, can serve as an effective incentive for population influx into rural regions.
The results of this study provide a foundation for reevaluating the tax structure from the perspective of promoting vacant housing activation.
| Translated title of the contribution | Tax Incentive Measures for Promoting Housing Utilization in Rural Areas |
|---|---|
| Original language | Korean |
| Pages (from-to) | 207-237 |
| Number of pages | 31 |
| Journal | 세무학연구 |
| Volume | 40 |
| Issue number | 4 |
| State | Published - 2023 |