Regarding the 2012 tax reform (revised burden adjustment measures for residential land, etc.)
Updated: November 20, 2013
Due to the revision of the Local Tax Law, the calculation method of the tax base amount, which is the basis for calculating fixed asset tax and city planning tax for residential land, etc., has been changed.
About burden adjustment measures
As a general rule, fixed asset tax and city planning tax are calculated using price, etc. as the tax base amount. However, with regard to land, due to measures to suppress rapid increases in tax amounts, etc., the distance between the price, etc. and the tax base amount ( burden level ) varies. As a result, even land with similar prices may have different tax bases and different tax burdens. In order to balance the burden level and make the tax burden fair, the tax base amount is suppressed for land where the burden level is above a certain level, and the tax base amount is gradually raised for land that is less than that level.
How to determine the burden level
The burden level (%) is
Previous year's tax base amount ÷ Current year's assessed value (×Special rate for residential land, etc.)×100
It can be calculated using the formula.
Summary of the amendment
Until taxation in 2011, the tax burden was the same as the previous year (deferred) for residential land where the burden level was 80% or more, but due to the tax reform, the calculation method will be changed in the following two stages.
1 In the case of taxable residential land, etc. from FY 2012 to FY 2013, "less than 80%" of the burden level subject to increase in the tax base amount will be changed to "less than 90%", and "80% or more 100%" will be subject to deferral. We will change the term ``less than 90%'' to ``90% or more and less than 100%'' and reduce the special provisions for deferral.
2 The special exemption for residential land with a tax burden level of 90% or more from FY2014 will be abolished, and land with a tax burden level of less than 100% will be subject to an increase.
Additionally, the special deferral for non-residential land such as commercial land will continue.
| year |
Burden level over 100 |
Burden level 90% to 99% |
Burden level 80% to 89% |
Burden level less than 80% |
| Before 2011 Calculation method of tax base amount |
If the burden level is 100% or more... Main tax base amount (price x special rate) |
If the burden level is 80% or more and less than 100%... The tax base amount remains unchanged at the previous year (comparative) tax base amount. |
If the burden level is less than 80%... Previous year (comparative) tax base amount + main tax base amount x 5%...[a] If [a] exceeds 80% of the main tax base amount, the amount equivalent to 80% If [a] is less than 20% of the main tax base amount, the amount equivalent to 20% |
|
| 2012 and 2013 Calculation method of tax base amount |
If the burden level is 100% or more... Main tax base amount (price x special rate) |
If the burden level is 90% or more and less than 100%... The tax base amount remains unchanged at the previous year (comparative) tax base amount. |
If the burden level is less than 90%... Previous year (comparative) tax base amount + main tax base amount x 5%...[a] If [a] exceeds 90% of the main tax base amount, the amount equivalent to 90% If [a] is less than 20% of the main tax base amount, the amount equivalent to 20% |
|
| After 2014 Calculation method of tax base amount |
If the burden level is 100% or more... Main tax base amount (price x special rate) |
If the burden level is less than 100%... Previous year (comparative) tax base amount + main tax base amount x 5%...[a] If [a] exceeds 100% of the main tax base amount, the main tax base amount If [a] is less than 20% of the main tax base amount, the amount equivalent to 20% |
||
Reference: Changes in taxation of residential land (illustration) (PDF: 139KB)
Reference: How to calculate the detailed tax base amount for land (PDF: 258KB)
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Inquiries regarding this page
Inagi City Citizens Department Taxation Division
2111 Higashi-Naganuma, Inagi-shi, Tokyo
Phone: 042-378-2111 Fax: 042-370-7055
