| Title |
The Effects of Site Value Taxation in an Idle Land |
| Abstract |
It seems that people viewed speculators as reaping speculative gains, marking windfall abnormal profits. Return from holding idle land consists of the capital gains and the rent from it. Especially rising land prices in an idle land have been a hot issue in Korea since 1987.It becomes necessary to look at the contents and process of the Excessive Land Price Increment Tax on land price. Not only it isadopted separately by the land prices rising ratio, but it is influenced by the use and size of land parcel. The purpose of the study is to analyze the impact of the Excessive Land Price Increment Tax on land price, considering the use and size of land parcels.Observing the results, Introductory and Enforcement Step(that is, Step 2 and Step 4) indicates relatively high construction activity. That is, Introductory step(that is, Step2) shows high construction activity, 21% in the probability of idle land development, and especially in the case of commercial buildingunder or equal to 100 pyeong is about 32%. It happened when Excessive Land Price Increment Tax on Land Price was avoided to levy. And in the step of Enforcement (that is, Step4), probability of idle land development is about 16%, but it doesn't show much difference based on 200 pyeong. Therefore, the Excessive Land Price Increment Tax on Land Price is relatively far more effective than the Tax Burden on Excessive Land Possession. When we infered that the Excessive Land Price Increment Tax is levied on only idle land, it is apprehensible that construction activity following after the enforcement of Recent Land Policy Reform Measures concentrates on the idle land. |