Whether the property tax of the heavy tax rate is excluded in cases where an existing type of business is operated after the acquisition of a factory building in the lost large city and new facilities are installed.

The succession acquisition of a factory in the large city with the exclusion of property tax under the heavy tax rate under the Local Tax Act refers to the case where the owner of an existing factory comprehensively takes over the land, buildings, production facilities, etc. of an existing factory, and the change of the business type of an existing factory changes only the business type or the person who comprehensively takes over the land, facilities, etc. of an existing factory carries on business different from the existing business type. Thus, even if it is in accordance with the previous size after taking over the factory buildings and facilities in an existing large city, if a factory building is newly constructed and a new machinery facility is installed and operates a business different from the existing business type, the acquisition of the factory facilities, etc. is not the succession acquisition of an existing

Articles 112(3), 138(1), and 188(2) of the Local Tax Act; Article 84 of the Enforcement Decree of the Local Tax Act; Article 47 of the Enforcement Rule of the Local Tax Act;

[Defendant-Appellant] Defendant 1 and 3 others

Sung-nam City Law Firm Lee Jae-ho, Counsel for defendant-appellant

Seoul High Court Decision 80Gu874 delivered on December 3, 1981

The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

According to the reasoning of the judgment below, the court below determined that the plaintiff, as a food manufacturer with the purpose of processing seaweeds and producing albane, etc., of which the plaintiff leased or used another's factory located in Bupyeong-si in Gyeonggi-do, 1980.1.19, 19, which was owned by the non-Seongdong Industrial Co., Ltd., which purchased a factory building and its facilities as the factory site 1,747 square meters in the 441-4, Sungnam-si, Seoul Special Metropolitan City, where the building and its facilities were destroyed due to fire, 112(3), 138, 18(2)4 of the former Enforcement Decree of the Local Tax Act, which purchased a new factory building and its appurtenant facilities at the previous size before the relocation of the factory building, and completed the registration of ownership transfer on May 7, 1980. The court below determined that the plaintiff was not able to newly construct a new factory or to remove new facilities under Article 28(2)4 of the Enforcement Decree of the same Act.

However, in light of the legislative intent of Articles 112(3), 138(1), and 188(2) of the above Local Tax Act, Articles 84-2 and 142-2(2) of the above Enforcement Decree of the same Act, and Article 47 of the Enforcement Rule of the same Act, the succession acquisition of a factory is comprehensively taken over the land production facilities, etc. of an existing factory, and even if it falls under the previous size after taking over a small factory building and facilities as in the case in this case, it does not constitute a new construction of a factory and new machinery facilities. The change of business type of a factory refers to the case where the owner of an existing factory changes only the type of business and conducts business different from the type of existing factory by comprehensively taking over the land and building production facilities of an existing factory, and it is reasonable that this case also does not constitute a comprehensive transfer of the land, building, etc. of an existing factory.

Therefore, the plaintiff's acquisition of the factory of this case is the new construction of a factory in a large city as prescribed by the Local Tax Act. Thus, the court below cannot avoid criticism that misunderstanding legal principles such as the above Local Tax Act, the Enforcement Decree of the same Act, and the Enforcement Rule of the same Act, which apply the heavy taxation rate for the purpose of suppressing the construction of a factory in the large city in the small city in the small city in the city

Therefore, the judgment of the court below is reversed and the case is remanded to the Seoul High Court for further proceedings consistent with this Opinion. It is so decided as per Disposition by the assent of all participating judges.

Justices Lee Il-young (Presiding Justice)