Osan City Promotes Property Tax Reduction for Landlords Who Lower Rent

[Suwon Ilbo=Reporter Seo Dong-young] Osan City plans to grant property tax reductions for the 2020 regular assessment to landlords who voluntarily lower rent for small business owners facing difficulties due to COVID-19.

The initiative aims to create a social atmosphere of mutual prosperity between landlords and tenants through tax support for landlords and to stabilize the civil economy.

The city will reduce property taxes (buildings and land) assessed in July 2020 (buildings) and September 2020 (land) by up to 50% of the tax amount calculated based on rental area, proportional to the annual rent reduction rate and reduction period.

However, if the property tax exceeds 10 million won, the maximum reduction is 5 million won. Properties and land used for luxury entertainment facilities, gambling and gambling businesses, entertainment and indulgence businesses, and similar business types are excluded from the tax reduction.

The city plans to obtain approval from the Osan City Council at an extraordinary session in April for the "kind landlord" property tax reduction plan and formally implement it.

Osan Mayor Kwak Sang-wook stated, "The campaign to establish a mutually prosperous rental culture can provide great courage and hope in a situation where small business owners and self-employed workers are facing significant difficulties due to economic downturn in the region," and added, "We hope for active participation from landlords."

Meanwhile, the city is implementing tax support measures including extension of local tax payment deadlines, collection deferral, and tax investigation deferral for businesses facing difficulties due to COVID-19 confirmed cases, quarantined individuals, and closures resulting from visits by confirmed cases.