What is Property Tax?

Property Tax is a tax calculated based on the asset value of land, buildings, and depreciable assets (collectively referred to as "fixed assets"), which the owner pays to the municipality where the fixed assets are located.

Assets subject to Property Tax

The assets subject to Property Tax are as follows.

• Land... rice fields, farmland, residential land, mineral spring land, ponds and marshes, forests, ranches, wasteland, and other types of land
• Buildings... residential, commercial, factories, warehouses, offices, and other structures
• Depreciable assets... structures, machinery, equipment, ships, aircraft, vehicles, transport equipment, tools, instruments, and fixtures, which are business assets other than land and buildings that are subject to depreciation for corporate tax or Income Tax (excluding those subject to automobile tax and light vehicle tax)

Taxpayer

Every year on January 1st (referred to as the "assessment date"), individuals who own fixed assets in Inagi City are subject to taxation. Specifically, it is as follows.

• Land... a person registered as the owner in the registry or a person registered in the land supplementary taxation ledger
• House... A person registered as the owner in the registry or a person registered in the supplementary taxation ledger for houses
• Depreciable Assets… A person registered as the owner in the depreciable assets taxation ledger

About Fixed Asset Prices

The price of fixed assets refers to the price evaluated based on the "Fixed Asset Valuation Standards" established by the national government, which is registered in the fixed asset taxation ledger after the municipal mayor has made decisions regarding that price.

Land and buildings will undergo a full evaluation every three years. This year is referred to as the base year, and the fiscal year 2021 is the base year. The prices determined in the base year will generally remain unchanged for the following two years, which are the second year and the third year.
However, for buildings that have undergone new construction or renovations after the evaluation, land that has changed in current use, subdivision, shape, or quality, and land where a decline in value makes it inappropriate to maintain the price, new evaluations will be conducted in the second or third year, and new prices will be determined.

Depreciable assets are valued annually based on declarations. The evaluation method is based on the fixed asset evaluation standards, taking into account the decrease in value (depreciation) corresponding to the number of years since acquisition, based on the acquisition cost. The method of depreciation is, in principle, the same as the "old declining balance method" used for national taxes.

Taxable Standard Amount

The taxable standard amount will, in principle, be the price (assessed value) of the fixed assets.

However, in the case of fixed assets that are subject to special provisions for the taxation standard, the taxable standard amount will be the assessed value multiplied by the special provision rate (for small residential land (Note 1) it is 1/6, for general residential land (Note 2) and farmland in urbanization areas it is 1/3, etc.).

In addition, regarding the standard taxable amount for land, if it is taxed at a level below the standard taxable amount derived from the original price (assessed value × special rate), the taxable amount will be calculated applying the burden adjustment measures as follows (1) to (4) according to the burden level (Note 3) from the fiscal year 2014 onwards.

• (Note 1) Small-scale residential land = land for a residence with an area of 200 square meters or less for one dwelling.
• (Note 2) General residential land = land for housing that exceeds 200 square meters for one dwelling unit and up to 10 times the total floor area of the residence.
• (Note 3) Burden level = Previous year's (reference) taxable standard amount divided by current year's assessed value × special rate (standard taxable amount) (unit = %)

(1) Small-scale residential land / General residential land

• Burden level... when it is 100% or more
  The current year's taxable standard amount is the current year's assessed value × special rate (standard taxable amount)
• Burden level... less than 100%
  The current year's taxable standard amount is the previous year's taxable standard amount + (standard taxable amount × 5%)...〔a〕
  However,
  • If the taxable standard amount for the current year obtained in [a] exceeds 100% of the standard taxable amount, then the standard taxable amount applies.
  • If the current year's taxable standard amount obtained in [a] is less than 20% of the standard taxable amount, the equivalent amount of 20%

(2) Commercial Land (Non-Residential Land)

• Burden level... when it exceeds 70%
  The current year's taxable standard amount is the current year's assessed value × 70%
• Burden level... between 60% and 70%
  The current year's taxable standard amount is the same as the previous year's taxable standard amount (held steady)
• Burden level... less than 60%
  Current year's taxable standard amount is the previous year's taxable standard amount + (current year's assessed value × 5%)...〔b〕
  However,
  • If the taxable standard amount for the current year obtained in [b] exceeds 60% of the current year's assessed value, the amount equivalent to 60% will apply.
  • If the taxable standard amount for the current year obtained in [b] is less than 20% of the current year's assessed value, the amount equivalent to 20% will apply.

(3) Agricultural Land in Urbanization Areas

• Burden level... when it is 100% or more
  The current year's taxable standard amount is the current year's assessed value × special rate (standard taxable amount)
• Burden level…when it is less than 100%
  The current year's taxable standard amount is the previous year's taxable standard amount + (basic taxable standard amount × 5%)…〔c〕
  However,
  • If the taxable standard amount for the current year obtained in (c) exceeds 100% of the standard taxable amount, then the standard taxable amount applies.
  • If the current year's taxable standard amount obtained in (c) is less than 20% of the standard taxable amount, the equivalent amount of 20% will apply.

(4) General Agricultural Land (Agricultural land other than residential land taxation such as production green spaces)

The taxable standard amount for the current year will be the previous year's taxable standard amount multiplied by the burden adjustment rate corresponding to the following burden level categories, with the current year's assessed value as the upper limit.

• When the burden level is 90% or more...1.025
• When the burden level is between 80% and 90%...1.05
• When the burden level is 70% or more but less than 80%...1.075
• When the burden level is less than 70%...1.1

Please check the attached documents below.

• How to Calculate the Standard Taxable Amount for Land (PDF 258.9KB)

About the Revision of Burden Adjustment Measures

In the tax reform of fiscal year 2012, the special provision to maintain the taxable standard amount from the previous year when the burden level is 80% or more for small residential land, general residential land, and farmland in urbanization areas has been abolished. However, for cases where the burden level is 90% or more, the special provision continued until fiscal year 2013, and was abolished in fiscal year 2014.
Please check the page for "Tax Reform of Fiscal Year 2012 (Revisions to Burden Adjustment Measures for Residential Land, etc.)" for details.

• Fiscal Year 2012 Tax Reform (Amendment of Burden Adjustment Measures for Residential Land, etc.)

Tax Rate

The property tax rate in Inagi City is the standard rate of 1.4%.

Method of Calculating Tax Amount

The total taxable standard amount (rounded down to the nearest 1,000 yen) × tax rate (1.4%) will be the tax amount (rounded down to the nearest 100 yen).

Tax-exempt point

If the total taxable value of land, houses, and depreciable assets owned by the same person within Inagi City does not reach the following amounts, Property Tax will not be levied on those assets.

• Land... 300,000 yen
• House... 200,000 yen
• Depreciable Assets…1.5 million yen