Frequently Asked Questions (Property Tax)

QuestionWhy does the assessed value not decrease even if the house becomes old?

Response

The assessed value of a building is determined by multiplying the reconstruction cost, which is the cost required to newly construct a building identical to the one being evaluated at the time of reassessment, by the depreciation rate that reflects the usual wear and tear due to the passage of years since the building was constructed. (However, if this value exceeds the value from the previous year, it is typically maintained at the previous year's value.)
For some older houses, due to the continued rise in construction costs in the past, the assessed value has been kept unchanged. Even when considering the depreciation correction rate, the assessed value may not fall below the previously maintained value, resulting in the assessed value not decreasing.