2. The costs of the lawsuit are assessed against the defendant.

A. The Plaintiff leased the instant building portion of 511.92 square meters on the 1st underground floor (hereinafter “the instant building portion”) among the buildings located in Seoul (detailed number omitted), his own ownership, to Song Hong, and the Song Hong, as of June 1, 2002, operated entertainment bar business under the trade name, “(trade name omitted) studio (hereinafter “instant business”).” on the part of the instant building as of June 1, 2002, the property tax assessment basis date.

B. In imposing the Plaintiff’s regular property tax, etc. on the instant building in 2002, the Defendant: (a) deemed the instant building’s portion as an dancing entertainment tavern business place which is one of the high-class recreation centers; and (b) applied the heavy taxation rate of 50/100 pursuant to Article 18(1)2(2) of the Local Tax Act to the aggregate of the property tax on the entire building of the instant building by applying the heavy taxation rate of 50/100; and (c) imposed the Plaintiff property tax of KRW 9,236,650 on July 10, 202 and KRW 1,847,30 on local education tax equivalent to 20/100 of the property tax.

[Evidence] Facts without dispute, Gap 1, Eul 1

2. Whether the disposition is lawful;

A. The plaintiff's assertion

The business place of this case is a general entertainment drinking house that mainly enables customers to sing and singing while drinking alcoholic beverages or view performances in the form of business and provided a small space at which customers to sing and singing in the business place. However, since customers’ fees to sing and singing in the place have dancing by singing, it cannot be viewed as having installed a dance hall separate from the guest’s seats. Thus, the business place of this case does not constitute an entertainment drinking house business place under the Local Tax Act.

B. Relevant statutes

[Local Tax Act]

(2) The acquisition tax rate for acquiring real estate, etc. falling under any of the following subparagraphs (including cases of acquiring a portion of a villa, etc. by dividing it) shall be 500/100 of the tax rate under paragraph (1). In such cases, the rate shall be limited to golf courses where they are registered as sports facility business under the Installation and Utilization of Sports Facilities Act by installing the relevant facilities (including cases where an alteration is registered by expanding the facilities), and where the boundary of land attached to any villa or high-class recreation center is unclear, land equivalent to ten times the floor area of the building shall be deemed land annexed thereto:

4. High-class recreation centers: Buildings and land attached thereto as determined by the Presidential Decree among buildings used for casinos, amusement and tavern quarters, special bathing rooms or other similar purposes;

Article 188 (Tax Rates) (1) The standard tax rates of property tax shall be as follows:

2. Buildings:

(b) A golf course, villa, or high-class recreation center under the provisions of Article 112(2) (the provisions of the latter part of the main sentence of the same paragraph shall not apply): 50/1,000 of the value thereof;

(d) Buildings other than those as referred to in items (a) through (c): 3/1,000 of the value thereof;

Article 260-3 (Tax Base and Tax Rate) (1) The amount of local education tax shall be an amount calculated by multiplying the tax base under any of the following subparagraphs by the relevant tax rate:

4. The amount of property tax to be paid in accordance with the provisions of this Act: 20/100; and

[Enforcement Decree of the Local Tax Act]

(3) The term “building and land attached thereto as determined by the Presidential Decree” in Article 112 (2) 4 of the Act means a building and land attached thereto used for the following purposes. In this case, where a high-class recreation center is partially installed in a building, land equivalent to the ratio of the total floor area of a building for a high-class recreation center to the total floor area of the building among the land attached to the building concerned shall be deemed the land attached to a high-class recreation center:

5. Places of business under the Food Sanitation Act excluding tourist amusement restaurants (in the case of tourist theater restaurant business, limited to those located within tourist hotels and designated by the Minister of Culture and Tourism pursuant to Article 6 of the Tourism Promotion Act) designated pursuant to Article 6 of the Tourism Promotion Act among the places of business falling under any of the following items:

(a) Business places (limited to those with a business space in excess of 100 square meters) for dancing entertainment bars (cabarets, service clubs, and disco clubs) that have a dancing space separated from guest seats; and

[Enforcement Decree of the Food Sanitation Act]

The detailed types and scope of business under Article 21 (2) of the Act shall be as follows:

8. Food service business;

(d) Entertainment bar business: Business of cooking and selling mainly alcoholic beverages, where workers engaged in entertainment may be employed or entertainment facilities may be installed, and customers may sing or dance;

(c) Fact of recognition;

(1) The instant business place was a type of entertainment bar business where the entire size of the instant business place is 511.92 square meters and without an admission fee, and had customers sing and singing at the customer’s request while selling alcoholic beverages and liquors, or had customers sing and singing at the customer’s request.

The center of the business of this case, the center of the business of this case, has a round of 3.6 meters in diameter for performance, and the space of 2.5 meters in width separated from the guest seat is in the semi-permanent form. The left-hand side of the original stage connected to the space is connected with the entrance of the toilet with a separate space of 15 persons, where the maximum of 15 persons can dance. There are various lighting fixtures in the space, and multiple large spackers in the left-hand side, and multiple large spackers in the right-hand side are installed in the upper-hand side, and the floor has two original-type trees, the diameter of which exceeds 90cm in diameter for dancing. The space of the original stage and the area of the left-hand stage are 21.50 square meters in total.

Then, the space of the original stage of the establishment of the instant case seems to have been used by the customer as a place where the customer shots and dances together with his own fee or other customers while the space of the establishment of the instant case is the way to secure a view for viewing public performance, to travel between guest seats and to move the toilet.

[Evidence] A3-1, 2, A4-1, 2, A7, 2, 3-1 through 16, 3-1 to 2, 3-1 to 16, 2, 3-1 to 3-1, 3-2

D. Determination

The purpose of the legislation of Article 188(1)2(2) of the Local Tax Act is not to refer to any entertainment tavern business place with a space for dancing under the Food Sanitation Act, but to impose property tax on the dancing entertainment tavern business place with a dancing space separated from the guest seats at high-class recreation centers (50/1,00: 50 general tax rate of 3/100) different from the general entertainment tavern business place. In addition to the above legislative purpose and the food sanitation business under the Food Sanitation Act, the entertainment entertainment tavern business place under the Local Tax Act is permitted to dance regardless of its business form. In addition, the purpose of the legislation of the Local Tax Act is not to refer to any entertainment tavern business place with a dancing space, and it is reasonable to view that customers are able to dance in the business form of entertainment tavern with the main business type and the size of dancing space, and it is reasonable to view only the entertainment entertainment club with the business type of Article 8(1)4 of the Enforcement Decree of the Local Tax Act with the business type equivalent to the size of entertainment tavern under the same Article 8(3).

In this case, the health stand, according to the above facts, the left-hand side of the business establishment of this case is divided into guest seats and its customers can enjoy dancing at the same time, and the sound facilities and lighting facilities are installed. However, as seen earlier, the business establishment of this case is the main business type for customers to see music or performances while drinking, and customers to dance is only incidental. The size of the place for dancing of the business establishment of this case is less than 21.50 square meters, and it is extremely low in proportion to the total area of 51.92 square meters. Considering the above facts, it is difficult to view the business establishment of this case as an entertainment tavern with a place for dancing, but it is difficult to view it as an entertainment tavern under the Local Tax Act where property tax is imposed on heavy and heavy tax rate.

Therefore, the part of the disposition imposing the property tax of this case, which applied the heavy taxation rate exceeding the general tax rate on the premise that the business establishment of this case constitutes the place of entertainment tavern business under the Local Tax Act, is unlawful. Accordingly, the local education tax of this case is also unlawful.

(e) Calculation of a legitimate tax amount;

According to the statements in Gap 1 and Eul 1, since the tax amount calculated by applying the heavy taxation rate exceeding the general taxation rate for the instant building is 5,851,030 won, and the amount of local education tax for this case is 1,170,200 won, the plaintiff's reasonable tax amount for the entire building of this case is calculated based on the plaintiff's regular amount of property tax and local education tax for 2002, the property tax is 3,385,620 won (=9,236,650 won-5,851,030 won), and the local education tax is 67,130 won (=1,847,30 won-1,170,200 won).

3. Conclusion

Therefore, the part of the disposition imposing the property tax and the local education tax of this case exceeding the above legitimate tax amount is unlawful. Thus, the plaintiff's claim of this case seeking the revocation of the part is justified and it is so decided as per Disposition.

Judges Kim Chang-suk (Presiding Judge)