Local Tax Act

With respect to light motor vehicle tax, the meanings of the terms set forth in the following items are as prescribed respectively in those items.

light motor vehicle, etc.: means motorized bicycles, light motor vehicles, special small motor vehicles and two-wheeled small-sized motor vehicles;

motorized bicycle: means, among motorized bicycles prescribed in Article 2, paragraph (3) of the Road Transport Vehicle Act, those manufactured for the purpose of moving on land by means of a prime mover;

light motor vehicle: means a light motor vehicle prescribed in Article 3 of the Road Transport Vehicle Act;

special small motor vehicle: means a special small motor vehicle prescribed in Article 3 of the Road Transport Vehicle Act;

two-wheeled small-sized motor vehicle: means, among small-sized motor vehicles prescribed in Article 3 of the Road Transport Vehicle Act, those with two wheels (including two-wheeled motor vehicles with a sidecar).

Light motor vehicle tax is imposed on light motor vehicles, etc., in the municipality in which their principal storage location is situated, on their owners.

Where the owner of a light motor vehicle, etc. is a person on whom light motor vehicle tax may not be imposed pursuant to Article 445, paragraph (1), light motor vehicle tax is imposed on the user of that light motor vehicle, etc., notwithstanding the preceding paragraph; provided, however, that this does not apply to light motor vehicles, etc. provided for official or public use.

Where, in a sales contract for a light motor vehicle, etc., the seller reserves ownership of that light motor vehicle, etc., light motor vehicle tax is imposed by deeming the buyer to be the owner of the light motor vehicle, etc.

Where there is a change of buyer with respect to a light motor vehicle, etc. subject to a sales contract to which the provisions of the preceding paragraph apply, light motor vehicle tax is imposed by deeming the person who newly becomes the buyer to be the owner of the light motor vehicle, etc.

A municipality may not impose light motor vehicle tax on the national government, tax-exempt incorporated administrative agencies, national university corporations, etc., the Japan Pension Service and the Japan Institute for Health Security, or on prefectures, municipalities, special wards, associations of these, property wards, special merger districts and local incorporated administrative agencies.

A municipality may not impose light motor vehicle tax on those among light motor vehicles, etc. owned by the Japanese Red Cross Society that are for emergency use directly in its original business, or other similar vehicles, as specified by Municipal Ordinance.

A municipality may not impose light motor vehicle tax on those light motor vehicles, etc. owned by the armed forces of a contracting state (meaning the armed forces of that contracting state located in Japan (meaning the area where this Act is enforced) in connection with activities that Japan and that contracting state mutually decide on and carry out with the consent of Japan on the basis of a facilitation agreement (meaning a treaty or other international agreement between Japan and a contracting state other than Japan concerning the facilitation of mutual access and cooperation between the Self-Defense Forces of Japan and the armed forces of that contracting state, which provides for matters concerning exemption from Japanese taxes, as specified by Cabinet Order)) that are used for official purposes.

If necessary for an examination concerning the assessment and collection of light motor vehicle tax, a municipal tax collection official may question a person liable for tax or a person found to have a tax liability, or inspect the books and documents relating to the business of those persons (including, where electronic or magnetic records (meaning records made in electronic form, magnetic form or any other form that cannot be perceived by human senses, which are used for information processing by a computer) have been made or kept in lieu of making or keeping them, those electronic or magnetic records; the same applies in items (i) and (ii) of paragraph (1) of the following Article) and other articles, or request the presentation or submission of those articles (including copies thereof).

In the case referred to in the preceding paragraph, the tax collection official concerned must carry an identification card certifying the official's status and present it when requested by a person concerned.

A municipal tax collection official may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

With respect to an examination concerning delinquent tax collection procedures for light motor vehicle tax, notwithstanding paragraph (1), the matter is as provided in Article 460, paragraph (6).

The authority of a municipal tax collection official under the provisions of paragraph (1) or (3) must not be construed as having been granted for the purpose of criminal investigation.

In the case falling under any of the following items, the person who committed the violation is punished by a fine of not more than 300,000 yen:

where the person refuses, obstructs or evades an inspection by a tax collection official of books and documents or other articles under paragraph (1) of the preceding Article;

where the person, without justifiable grounds, fails to comply with a request by a tax collection official under paragraph (1) of the preceding Article for the presentation or submission of articles, or presents or submits books and documents or other articles (including copies thereof) containing false entries or records;

where the person fails to answer, or gives a false answer, in response to questions by a tax collection official under paragraph (1) of the preceding Article.

Where a representative of a corporation, or an agent, employee or other worker of a corporation or person, has committed a violation under the preceding paragraph in connection with the business or property of that corporation or person, in addition to punishing the offender, the penalty prescribed in that paragraph is to be imposed on that corporation or person.

When a municipality imposes light motor vehicle tax at a tax rate exceeding the standard tax rate prescribed in the preceding paragraph, it may not impose it at a tax rate exceeding the rate obtained by multiplying each of the tax rates in the items of that paragraph by 1.5.

A municipality may, with respect to light motor vehicles, etc. other than the light motor vehicles, etc. set forth in the items of paragraph (1), and with respect to those, among the light motor vehicles and special small motor vehicles set forth in item (ii) of that paragraph, such as three-wheeled special small motor vehicles for agricultural work, for which it is difficult to follow the classification of that item, establish classifications, separate from the classifications in the items of that paragraph, by specifications of light motor vehicles, etc. such as use, total displacement and rated output, and determine the tax rate of light motor vehicle tax. In this case, it must ensure that the rates are not out of balance with the tax rates determined by applying the preceding two paragraphs.

The assessment date for light motor vehicle tax is April 1.

The payment period for light motor vehicle tax is to be specified by the Municipal Ordinance of the municipality concerned within April; provided, however, that in the case of special circumstances, a different payment period may be specified.

Light motor vehicle tax must be collected by the method of ordinary collection.

When light motor vehicle tax is to be collected by the method of ordinary collection, the tax notice to be delivered to the taxpayer must be delivered to the taxpayer no later than 10 days before the due date for payment.

If a municipality has provided by its Municipal Ordinance that light motor vehicles, etc. are to bear a marker issued by the municipality, it may, notwithstanding paragraph (1), as provided by the Municipal Ordinance of the municipality, collect light motor vehicle tax by the method of collection by stamps at the time of issuing the marker to the owner of the light motor vehicle, etc.

When a municipality intends to collect light motor vehicle tax by the method of collection by stamps under the preceding paragraph, it must have the taxpayer pay the tax by means of stamps issued by the municipality. In this case, the municipality may substitute for stamps by having stamps affixed to a document certifying that the obligation to pay light motor vehicle tax has arisen, or by affixing a tax-paid seal after receiving payment of cash equivalent to the face value of the stamps.

When a taxpayer has affixed a stamp, the municipality must clearly cancel it with the seal or signature of the municipality, across the paper on which the stamp was affixed and the pattern of the stamp.

Matters concerning the handling of stamps under paragraph (4) must be specified by the Municipal Ordinance of the municipality concerned.