This study examines the incidence of property taxes, focusing on whether the property tax, which is levied on the property owner when the owner and the user are different, is passed on to the user. If the tax is borne by the owner, it acts as a capital tax; if passed to the user, it functions as a consumption tax. Additionally, if the revenue from the tax is used to improve local environments, it could be considered a benefit tax.

Through empirical analysis, the study explores how changes in the comprehensive property tax system affect housing rental prices. The findings show that these changes have little impact on the rental market. No evidence was found to suggest that rental prices increase as the publicly assessed value rises near the taxable threshold. Moreover, using a difference-in-differences method to compare rental prices before and after the policy change, the analysis confirms that the strengthened system did not lead to higher rental prices for properties subject to the tax.

In conclusion, the results suggest that the tax is best viewed as a capital tax. Taxing housing assets may reduce investment and hinder the efficient allocation of capital. Since South Korea's property tax level is in line with the OECD average, it is important to minimize changes to the system, analyze its effects, and then proceed with reforms.

Preface
ABSTRACT
Summary (KOR)

Chapter 1. Introduction

Chapter 2. Housing Property Taxation
　Section 1. Discussions on Housing Property Taxation
　Section 2. Housing Property Taxation in Korea
　Section 3. Comparison with Overseas Property Taxes

Chapter 3. Officially Assessed Housing Prices and Rental Prices
　Section 1. Data
　Section 2. Tax Base of the Comprehensive Real Estate Tax
　Section 3. Relationship between Rental Prices and Officially Assessed Prices
　Section 4. RD-Based Empirical Results

Chapter 4. Impact of the Comprehensive Real Estate Tax on Rental Prices
　Section 1. Data
　Section 2. Empirical Model
　Section 3. Analytical Results

Chapter 5. Conclusion and Policy Implications

References