Property Tax

“Fixed asset” is a general term for land, buildings and depreciable assets, including the followings: 

[Land]

Rice fields, farms, residential land, mineral springs, ponds and swamps, forests, stock farms, wasteland and land for other purposes (miscellaneous land) 

[Buildings] 
​

[Depreciable assets] 

Residential buildings, stores, factories (including power stations and substations), warehouses and buildings for other purposes 

Business property such as structures, machinery, equipment, vessels, aircrafts, tools, instruments, fixtures that are subject to depreciation under the Corporate Tax Act or Income Tax Acts, excluding the property subject to motor vehicle tax or light motor vehicle

[Taxpayers] 

Those who are registered in the fixed assets tax cadaster as owners of land and/or buildings as of January 1 

▶ Taxpayer Subsequent to Transfer of Assets 

In the event that the transfer of ownership of assets is executed on or after January 2, the obligation for paying taxes on the assets is not transferred. Although there may be cases in which the burden of the fixed assets tax is shared between the parties based on the sales contract or the like in proportion to the length of period of ownership, such an arrangement would be nothing more than to bind the parties concerned. 

[Tax Payment]

▶ Land and buildings

Standard taxable value* 

x

Tax rate 1.4%

-

Reduction amount, etc. 

* Price registered in the fixed assets tax cadaster. 

[Due Date and Procedures for Tax Payment]

In principle, taxpayers shall pay the tax four times a year in June, September, December, and February based on the Tax Notice that is sent in the first tax due month in June. (For due dates on tax payment in each city, town, or village municipality, please see page 90.) For land and buildings, the Tax Notice is accompanied by a detailed specification of tax assessment. 

Assessed Value of Fixed Assets 

The value of fixed assets is the price that is determined by the prefectural governors or the mayors of city, town or village on the basis of the Standard Valuation Code of Fixed Assets, which was established by the Ministry of Internal Affairs and Communications, and then registered in the fixed assets tax cadaster.

Assessed Value of Land and Buildings 

Once every three years, an across-the-board revaluation is carried out to determine new prices. The fiscal year of this revaluation is called the basic taxable year, and FY 2018 (H30) is one of the basic taxable years.
In the second (fiscal 2019 (H31/R1)) and third (fiscal 2020 (R2)) years following the basic taxable year, the prices set in the basic year (fiscal 2018 (H30)) are retained. However, fixed assets are newly assessed to determine new prices, such as in the case of subdivided/consolidated land tracts or newly built, extended or renovated houses. 

Tax Exemption Limit

The fixed assets tax is not imposed when the total standard taxable value of fixed assets owned by the same person in the same municipality is less than the following :
       ​Land: ¥300,000       Residential building: ¥200,000