What is Urban Planning Tax?

Municipal planning tax is a purpose tax used to cover the costs of urban planning projects such as sewerage (Note 1) or the Land Readjustment Project.
As part of urban development projects such as the Land Readjustment Project, the supply and processing facilities for roads, water supply, sewerage, gas, etc. will be developed in a comprehensive manner, which will improve the living environment and transportation convenience even outside the area. Therefore, taxation will be uniformly applied regardless of whether it is inside or outside the area.

• (Note 1) City planning projects... Projects related to the development of city planning facilities (Note 2) and urban development projects
• (Note 2) City planning facilities... These are the facilities listed in Article 11 of the City Planning Act.

1. Transportation facilities (roads, urban expressways, parking lots, bus terminals, etc.)
2. Public open spaces (parks, green spaces, squares, cemeteries, etc.)
3. Water supply and sewerage, electricity and gas supply facilities, sewage treatment plants, waste incineration plants, and other supply or treatment facilities.

History

The City Planning Tax was established in the fiscal year 1956, and nationwide, about 80% of municipalities with a population of over 50,000 have introduced the City Planning Tax.

Taxable Assets

In principle, land and buildings located within the urbanization area of the urban planning area under the City Planning Act are subject to taxation.

Taxpayer

Every year on January 1st (referred to as the "assessment date"), individuals who own land and buildings located within the urbanization area are subject to taxation.

Taxable Standard Amount

The taxable standard amount will, in principle, be the price (assessed value) of the fixed assets.
However, in the case of fixed assets that are subject to special provisions for the taxation standard, the taxable standard amount will be the assessed value multiplied by the special provision rate (for small residential land, it is one-third, and for general residential land and agricultural land in urbanization areas, it is two-thirds, etc.).
In addition, the standard taxable amount for land will undergo burden adjustments similar to the Property Tax. For information on burden adjustment measures, please check the page titled 'What is Property Tax?'.

• What is Property Tax?

Tax Rate

It is stipulated as 0.3% in Article 144 of the Inagi City Municipal Tax Ordinance, but it is reduced to a special tax rate of 0.27% as per Article 25 of the supplementary provisions of the same ordinance.

Method of Calculating Tax Amount

The total taxable standard amount (rounded down to the nearest 1,000 yen) × tax rate (0.27%) will be the tax amount (rounded down to the nearest 100 yen).

Tax-exempt point

For property tax items below the exemption threshold, urban planning tax will not be levied.

Method of Tax Payment

You will pay it together with the Property Tax.