지방세 세목이전과 기초재원 확충방안

Schemes for Transfer of Local Tax Items and Enlargement of Fundamental Financial Resources at Local Governments

Various schemes have been made to secure the autonomy of local government since 1995. The collection of taxes, and thereby securing financial resources, is one of the most practical and direct methods of ensuring the autonomy of local governments. The following have been discussed as possible measures to transfer tax items and in turn, secure the financial resources of local governments: first, the partial transfer of value added tax revenue to local tax by installing additional tax items such as local excise tax; second, controversies on aggregate real estate tax; third, exchange of property tax, currently categorized as a district tax, and on tobacco sales tax, auto tax and driving tax, currently classified as city tax. The aforementioned three options aim to enlarge tax revenue of local governments. However, the third option causes reduction of tax revenue of other local governments. The flip side is that the third option closes the gap between local governments in terms of financial resources. This aspect provides a legitimacy of this option as a possible policy measure. The debate regarding the first and second option centers on which tax items should remain as national tax and which as local tax. This article reviews the pros and cons of the central government having the taxation authority as opposed to the local government, and sheds light on some points that may be surfaced by tax law or law regarding the introduction of local excise and aggregate real estate tax.