Frequently Asked Questions (Property Tax)

QuestionWhy is the tax amount increasing even though the land valuation is decreasing due to the drop in land prices?

Response

Before the fiscal year 1994, the evaluation standards for property tax on land varied by municipality and were assessed at a level significantly lower than the publicly announced land prices. To correct this, the system was revised in fiscal year 1994, and it was standardized nationwide to set the assessed value at approximately 70% of the publicly announced land prices.
However, if the revised 'assessed value' (the figure that serves as the basis for calculating the actual tax burden) were to be aligned with the 'taxable standard amount' (the basis for calculating the actual tax burden), the tax burden on taxpayers would increase sharply. Therefore, a system called 'burden adjustment measures' was established, which gradually raises the taxable standard amount each year, bringing the assessed value closer over time, and this is still being implemented today.
As a result, not all land tax amounts are increasing regardless of land price trends; only the land with a difference between the assessed value and the taxable standard amount will see a gradual increase in tax amounts.