This research examines the problems, and suggests directions for the improvement, of operation of the officially assessed land price system, which is the standard for the assessment basis. If the officially assessed land price fails to evaluate land value accurately, problems could arise when operating the tax system according to its prices. Even though a great deal of legal and administrative difficulties are interposed in the officially assessed land price system, it should be confirmed as to whether the existing system can reflect the market value of land accurately.
The Officially Assessed Land Price Act is adopting the concept of “reasonable price”. This is defined as “the price which is agreed upon in free trades of land”. It excludes speculative elements and expected development benefits, which creates a discrepancy with market value. That is why it is necessary to pin the assessed reasonable price to market price—namely, market value when all information regarding the land is accessible, all parties involved make decisions freely, all parties involved are non-collusive, and there is no incidental transaction which might influence price.
Therefore, principal improvement plan for the development of the officially assessed land price system is as follows: Select standard land samples through a statistical basic extraction method, avoid confusion about price by clearly defining the concept of reasonable price as market value, enforce the reporting of the sales prices and identify the degree to which reported prices reflect market value before accepting. Also, it is necessary to make continuous effort and undertake experiments with various functions in order to develop methodologies for the preparation of index tables. Furthermore, officially assessed land price and the assessment basis for the aggregate land taxes should be separated, and only specific rates of officially assessed land prices should be used as assessment bases.
과표현실화에 대비한 공시지가제도 및 행정의 개선방안(Ways to improve officially assessed land price system and administration to prepare for assessment basis realization)
|Series Title; No||정책연구시리즈 / 94-05|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||KDI; KDI School|