Osan City to Promote Property Tax Reduction for Landlords Who Lower Rents

[Suwon Ilbo=Reporter Seo Dong-young] Osan City plans to reduce the 2020 regular property tax for landlords who voluntarily lower rents to help small business owners facing difficulties due to the impact of COVID-19.

This initiative aims to create a social atmosphere of mutual prosperity between landlords and tenants through property tax incentives for landlords and to promote stability in people's livelihoods and the economy.

The city will reduce property tax (buildings and land) for the 2020 regular assessment—levied in July (buildings) and September (land)—by up to 50% of the assessed tax on leased areas proportional to the annual rent reduction rate and reduction period.

However, if the property tax amount is 10 million won or more, the reduction is capped at 5 million won. Cases involving luxury entertainment facilities and land, gambling and speculative business operations, and entertainment and pleasure business sectors and similar industries are excluded from the tax reduction.

The city plans to obtain approval from the Osan City Council extraordinary session held in April for the "good landlord" property tax reduction proposal and proceed with full implementation.

Osan Mayor Kwak Sang-wook said, "The movement to establish a co-prosperous rental culture can provide great courage and hope at a time when small business owners and self-employed people are facing significant hardship due to economic downturn in the region," and added, "We hope for active participation from landlords."

Meanwhile, the city is promoting tax incentives including extension of local tax payment deadlines, suspension of collection, and suspension of tax audits for businesses facing difficulties due to COVID-19 confirmed cases, quarantine measures, business closures following visits by confirmed cases, and other challenges.