By Yoon Ja-young
Staff Reporter

The National Tax Service (NTS) collected 2.3 trillion won in comprehensive real estate tax last year from 412,000 real estate-wealthy people, down 16 percent from the previous year, the tax agency said Monday. The number of wealthy people subjected to the tax also dropped by 71,000.

The tax, which was introduced during the liberal Roh Moo-hyun administration, was designed to stabilize real estate prices and remove tax loopholes for the rich. They were levied on those who owned houses worth 600 million won or over.

The agency had originally levied 2.8 trillion won in the tax, but the revision of the tax code last December forced the agency to return 562.2 billion won it had collected.

The revision followed a ruling by the Constitutional Court that said the tax was partially unconstitutional. According to the ruling, it was unconstitutional as it was levied based on the aggregate property value held by a household's members, not on an individual basis, discriminating against married couples.

The court also ruled that imposing the ``punitive'' tax on owners of a single but luxurious home does not conform to the Constitution.

Following the ruling, the tax code was revised. For instance, for those who own only one home, the minimum value of houses to be subject to the tax was raised to 900 billion won. Following the revision, the agency returned part of what had been collected to the taxpayers. The revision also gave tax cuts to those who have owned a house for a long time, and to senior citizens owning a home.

Consequently, 412,000 people shouldered 2.3 trillion won in the tax last year. It is the first time the agency has seen a decrease in the amount it has collected since its introduction.

The agency levied 642.6 billion won in the tax on 71,000 people in 2005, when it was introduced. The following year, 341,000 people were taxed 1.7 trillion won as housing prices rose steeply. In 2007, 483,000 people shouldered a burden of 2.8 trillion won.

This year, even fewer people are expected to be subject to the tax as the government has eased regulations, including lowering the tax rate and raising the minimum value of the houses subject to the tax.

The tax office will issue a tax notice around the middle of this month.

chizpizza@koreatimes.co.kr