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 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 the fiscal year 1994, and it was standardized nationwide to set the assessed value at approximately 70% of the publicly announced land prices.
However, when the revised 'assessed value' (the figure that serves as the basis for calculating the original tax burden) is combined with the 'taxable standard amount', which is the actual basis for calculating the tax burden, the tax burden on taxpayers would increase sharply. Therefore, a system called 'burden adjustment measures' has been established, which gradually raises the taxable standard amount each year and slowly brings the assessed value closer to it, and this is still being implemented today.
Therefore, not all land tax amounts are increasing regardless of land price trends; only those lands with a difference between the assessed value and the taxation standard amount will see a gradual increase in tax amounts.