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The newly enacted shared property tax system is to be implemented in the Seoul Metropolitan City Government from 2008. For the time being, the system is to be preserved under the 50% shared-property tax rate and the non-discriminatory distribution method for autonomous districts in Seoul Metropolitan City.
The purpose of this study is to examine the rationale for the 50% shared property tax rate and the non-discriminatory distribution method in the system and to find the best alternative for the tax rate and distribution method within the system.
In order to achieve the purpose, first, this study defined "What is the desired alternative for the established shared property tax system among autonomous districts in Seoul?" as a policy problem. Second, this study examined stake-holders' response and attitudes, focusing on the policy issue, "What is the best alternative for the shared property tax rate and distribution method?". Based upon this, Finally, this study evaluated the alternatives varying the tax rate and distribution method, considering the fiscal equalization and the political feasibility.
This study concluded that the 40% tax rate with the discriminatory distribution method could be better than the 50% tax rate with the non-discriminatory distribution method when we considered both the fiscal equalization and the political feasibility. Therefore, this study could provide
policy stake-holders with the criteria for the shared property tax rate and the distribution method although the relative significance for the fiscal equalization and the political feasibility was more or less determined by the author's preference.
