What is fixed asset tax?

Fixed asset tax is a tax calculated based on the asset value of land, buildings, and depreciable assets (collectively referred to as "fixed assets") and paid by the owner to the city, town, or village in which the fixed asset is located.

The following assets are subject to fixed asset tax:

• Land: rice fields, fields, residential areas, mineral springs, ponds, forests, ranches, wilderness, and other lands.
• Houses...Residences, stores, factories, warehouses, offices, and other buildings
• Depreciable assets: Business assets other than land and houses, such as structures, machinery, equipment, ships, aircraft, vehicles, transportation equipment, tools, equipment, and equipment, that are subject to depreciation under corporate tax or income tax (vehicle tax)・Excluding those subject to light vehicle tax)

Taxes are levied on people who own fixed assets in Inagi City on January 1st of every year (referred to as the "imposition date"). Specifically:

• Land... A person who is registered as the owner in the registry or a person who is registered in the land supplementary tax register.
• House... A person who is registered as the owner in the registry or a person who is registered in the house supplementary tax register.
• Depreciable assets: Persons registered as owners in the depreciable asset tax ledger

The price of fixed assets refers to the price evaluated based on the "Fixed Asset Valuation Standards" established by the government, etc., which is registered in the fixed asset tax ledger after the mayor of the municipality determines the price.

All land and houses are reevaluated every three years. This fiscal year is called the base year, and 2021 is the base year. In principle, prices determined in the base year remain unchanged for three years, including the second year, which is the following year, and the third year, which is the year after the following year.
However, for houses that have been newly built or expanded or renovated after the revaluation, land that has had its current use changed, parceled, or changed in shape or quality, land that has fallen in land prices and for which it is not appropriate to keep the price unchanged, etc. Even in the second or third year, a new evaluation will be conducted and a new price will be determined.

The value of depreciable assets is determined each year based on the declaration. The evaluation method is based on fixed asset evaluation standards, taking into account the decrease in value (depreciation) according to the number of years that have passed since acquisition, based on the acquisition price. The depreciation method is, in principle, the same as the "old declining balance method" used for national taxes.

As a general rule, the tax base amount is the price (assessed value) of fixed assets.

However, in the case of fixed assets that are subject to special tax assessments, the tax assessment amount is calculated by multiplying the assessed value by the special rate (one-sixth for small residential land (Note 1), one-third for general residential land (Note 2) and urbanized agricultural land, etc.).

In addition, when the tax base amount of land is taxed at a level lower than the standard tax base amount (assessed amount x special rate) derived from the original price, the tax base amount will be calculated by applying the burden adjustment measures as follows (1) to (4) from fiscal year 2014 onwards, depending on the burden level (Note 3).

(Note 1) Small residential land = land on a residential site of 200 square meters or less per dwelling (Note 2) General residential land = land on a residential site of more than 200 square meters per dwelling, up to 10 times the total floor area of ​​the house (Note 3) Burden level = previous year's (comparative) tax base amount divided by the current year's assessed value x special rate (standard tax base amount) (unit: %)

• Burden level...When it is 100% or more

The current year's tax base amount is the current year's assessed value x special rate (main tax base amount)

• Burden level...When less than 100%

The current year's tax base amount is the previous year's tax base amount + (main tax base amount x 5%)...[a]
however,
If the current year tax base amount calculated in [a] exceeds 100% of the main tax base amount, and if the current year tax base amount calculated in main rule tax base amount [a] is less than 20% of the main rule tax base amount. amount equivalent to 20%

• Burden level...When over 70%

The current year's tax base amount is the current year's assessed value x 70%

• Burden level: 60% or more and 70% or less

The current year's tax base amount is the previous year's tax base amount (deferred)

• Burden level...When it is less than 60%

The current year's tax base amount is the previous year's tax base amount + (current year's assessed value x 5%)...[b]
however,
If the current year's tax base amount calculated in [b] exceeds 60% of the current year's assessed value, the amount equivalent to 60% If the current year's tax base amount calculated in [b] is less than 20% of the current year's assessed value amount equivalent to 20%

• Burden level...When it is 100% or more

The current year's tax base amount is the current year's assessed value x special rate (main tax base amount)

• Burden level...When less than 100%

The tax base amount for the current year is the tax base amount for the previous year + (tax base amount for the standard × 5%) …〔c〕
however,
If the tax base amount for the current year calculated in [c] exceeds 100% of the standard tax base amount, the standard tax base amount If the tax base amount for the current year calculated in [c] is less than 20% of the standard tax base amount, the amount equivalent to 20%

The current year's tax base amount is calculated by multiplying the previous year's tax base amount by the burden adjustment rate according to the following burden level classification, 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 80% or more and less than 90%... 1.05
• When the burden level is 70% or more and less than 80%... 1.075
• When the burden level is less than 70%... 1.1

Please also check out this document.

In the 2012 tax reform, the special provision that left the tax base amount at the previous year's level when the burden level was 80% or more was abolished in burden adjustment measures for small-scale residential land, general residential land, and agricultural land in urbanized areas. Ta. However, in cases where the burden level is 90% or more, the special provisions continued until FY 2013, and were abolished in FY 2014.
For details, please check the page "About the 2012 Tax Reform (Revision of Burden Adjustment Measures for Residential Land, etc.)".

Inagi City's property tax rate is the standard tax rate of 1.4% .

The total tax amount (rounded down to the nearest 1,000 yen) x tax rate (1.4%) is the tax amount (rounded down to the nearest 100 yen).

If the total tax base amount for each land, house, and depreciable asset owned by the same person in Inagi City is less than the following amounts, fixed asset tax will not be levied on that asset.

• Land… 300,000 yen
• House… 200,000 yen
• Depreciable assets: 1.5 million yen