Local Tax Act

With regard to the calculation of the tax base of real property acquisition tax imposed on the acquisition of real property, in the case where a certified business operator prescribed in Article 23 of the Act on Special Measures concerning Urban Reconstruction (Act No. 22 of 2002) acquires, based on the within the project area pertaining to a certified plan prescribed in Article 24, paragraph (1) of that Act and within the project area relating to, in accordance with that certified plan, real property to be used for thea certified project prescribed in Article 25 of that Act (for a project of which the whole or a part of the project area is within the area of a special ward, limited to one that satisfies the requirements specified by Cabinet Order), only where the acquisition is made during the period from April 1, 2023 to March 31, 2029whose project area is wholly or partly within a special ward or the area of a specified urgent urban reconstruction development area prescribed in Article 2, paragraph (5) of that Act, limited to one that satisfies the requirements specified by Cabinet Order), an amount equivalent to the ratio determinedproportion specified by Prefectural Ordinance within the range of one-tenth or more and three-tenths or less, taking into account one-fifth of the price of that real property into consideration, is to be deducted from the price, only where that acquisition is made during the period from the date of enforcement of the Act Partially Amending the Act on Special Measures concerning Urban Reconstruction, etc. (Act No. 23 of 2026) through March 31, 2029; provided, however, that where thethat acquisition is made within the area of a specified urban regeneration emergencyurgent urban reconstruction development area prescribed in Article 2, paragraph (5) of that Actthe Act on Special Measures concerning Urban Reconstruction, an amount equivalent to the ratio determinedproportion specified by Prefectural Ordinance within the range of two-fifths or more and three-fifths or less, taking into account one-half of the price of that real property into consideration, is to be deducted from the price.

With regard to the calculation of the tax base of real property acquisition tax imposed on the acquisition of real property, in the case where a person prescribed in Article 109-7, paragraph (2), item (i) of the Act on Special Measures concerning Urban Reconstruction acquires, based on in accordance with a residential guidance area, etc. rights establishment, etc.rights-setting promotion plan prescribed in Article 109-7, paragraph (1) of that Act for which public notice was given pursuant tohas been given under Article 109-9 of that Act, real property within a residential guidance area, etc. rights establishment, etc.rights-setting promotion project zonearea prescribed in Article 81, paragraph (13)(17) of that Act that is stated in thea location optimizationnormalization plan prescribed in Article 81, paragraph (1) of that Act, only where the acquisition is made on or before March 31, 2027Article, an amount equivalent to one-fifth of the price of that real property is to be deducted from the price, only where that acquisition is made on or before March 31, 2027.

The tax base of the fixed assets tax or city planning tax imposed on those, among houses and depreciable assets specified by Cabinet Order that a certified business operator prescribed in Article 23 of the Act on Special Measures concerning Urban Reconstruction has newly acquired, during the period from April 1, 2023 to the date of enforcement of the Act Partially Amending the Act on Special Measures concerning Urban Reconstruction, etc. (Act No. 23 of 2026) through March 31, 2029, through a certified project prescribed in Article 25 of that Act (for a project of which the whole or a part of the project area is within the area of a special ward, whose project area is wholly or partly within a special ward or the area of a specified urgent urban reconstruction development area prescribed in Article 2, paragraph (5) of that Act, limited to one that satisfies the requirements specified by Cabinet Order) for use as the, that are used for public facilities, etc. prescribed in Article 292, paragraph (1), item (i) of that Act (2) of the Act on Special Measures concerning Urban Reconstruction or other facilities specified by Cabinet Order is, notwithstanding Article 349, Article 349-2 or Article 702, paragraph (1), limited to thesolely for fixed assets tax or city planning tax for five fiscal years counting from the fiscal year forin which fixed assets tax or city planning tax comes to beis newly imposed on those houses and depreciable assets, the amount obtained by multiplying the price that is to be the tax base of the fixed assets tax or city planning tax on those houses and depreciable assets by the ratio determinedproportion specified by Municipal Ordinance within the range of one-half or more and seven-tenths or less, taking three-fifths into consideration (into account three-fifths (three-fifths where those depreciable assets are subject to Article 389, three-fifthsthe application of Article 389); provided, however, that for those houses and depreciable assets that were acquired through a certified project prescribed in Article 25 of that Act carried out in a specified urban regeneration emergencyurgent urban reconstruction development area prescribed in Article 2, paragraph (5) of that Act, it is the amount obtained by multiplying the price that is to be the tax base of the fixed assets tax or city planning tax on those houses and depreciable assets by the ratio determinedproportion specified by Municipal Ordinance within the range of two-fifths or more and three-fifths or less, taking one-half into consideration (into account one-half (one-half where those depreciable assets are subject to the application of Article 389, one-half).

The provisions of Article 11, paragraph (7) of the Supplementary Provisions of the New Act apply to real property acquisition tax to be imposed on acquisitions of real property on or after the date of enforcement of the provisions set forth in Article 1, item (xiii) of the Supplementary Provisions, and the provisions then in force continue to govern real property acquisition tax imposed on acquisitions of real property before that date.

The provisions then in force continue to govern fixed assets tax imposed on houses and depreciable assets prescribed in Article 15, paragraph (13) of the Supplementary Provisions of the Local Tax Act prior to amendment by the provisions set forth in Article 1, item (xiii) of the Supplementary Provisions that were acquired during the period from April 1, 2023 to the day before the date of enforcement of the provisions set forth in that item.

The provisions then in force continue to govern city planning tax imposed on houses prescribed in Article 15, paragraph (13) of the Supplementary Provisions of the Local Tax Act prior to amendment by the provisions set forth in Article 1, item (xiii) of the Supplementary Provisions that were acquired during the period from April 1, 2023 to the day before the date of enforcement of the provisions set forth in that item.