Local Tax Act

The Minister for Internal Affairs and Communications must establish the standards for the valuation of fixed assets and the method and procedures for implementing the valuation (hereinafter referred to as "fixed asset valuation standards") and give public notice of them. In this case, the fixed asset valuation standards may provide that the prefectural governor is to establish the matters concerning their details.

When intending to establish the fixed asset valuation standards referred to in the preceding paragraph, the Minister for Internal Affairs and Communications must hear the opinion of the Local Finance Council.

The Minister for Internal Affairs and Communications must establish standard forms for preparing cadastral maps, land use maps, soil classification maps, house sketch maps, fixed asset sales records and other materials concerning the valuation of fixed assets, and statistics on fixed assets tax, and present them to the mayors of municipalities.

The Minister for Internal Affairs and Communications must give the mayors of municipalities the technical assistance set out in the following items with regard to the valuation of fixed assets.

preparing valuation manuals and other materials necessary for fixed asset valuers of municipalities to value fixed assets;

giving advice, where the mayor of a municipality seeks advice on the valuation of fixed assets that it is extremely difficult for the municipality's fixed asset valuers to value.

The prefectural governor (or, where the relevant municipalities for the fixed assets listed below span two or more prefectures, the Minister for Internal Affairs and Communications; the same applies hereinafter in this Article) must, after valuing the following fixed assets in accordance with the fixed asset valuation standards in accordance with the rules of Article 409, paragraphs (1) through (3), determine, as provided by Ministerial Order, the municipality in which each fixed asset is deemed to be located, its price, and, for fixed assets to which Article 349-3, Article 349-3-2 or Article 349-3-4 applies, the amount obtained by multiplying the price by the respective rate prescribed in those provisions (hereinafter referred to as the "price, etc." in relation to fixed assets tax), distribute the determined price, etc. to that municipality, and notify the mayor of that municipality by March 31 each year; provided, however, that in the case of disasters or other special circumstances, notice may be given on or after April 1.

vessels, vehicles and other mobile depreciable assets or movable depreciable assets specified by Ministerial Order that are used across two or more municipalities, as designated by the Minister for Internal Affairs and Communications;

fixed assets used for railways, tramways, power generation, power transmission, power distribution or telecommunications, or fixed assets located across two or more municipalities that are found to be incapable of proper valuation unless the whole is valued as a single fixed asset, in either case as designated by the Minister for Internal Affairs and Communications.

Upon receiving the notice under the preceding paragraph, the mayor of a municipality must, without delay, register the price, etc. of the fixed assets distributed to that municipality in the fixed assets tax ledger.

In the case referred to in the preceding paragraph, where the mayor of a municipality who has received notice of the distribution of the price, etc. for depreciable assets under paragraph (1), item (i) finds that the depreciable asset had not been registered before the date of that notice, the mayor must newly register the matters for registration prescribed in Article 381, paragraph (5).

Where the mayor of a municipality finds that the distribution of the price, etc. made by the prefectural governor under paragraph (1) is extremely disadvantageous to that municipality, the mayor may apply to the prefectural governor, setting out the grounds, for adjustment of the distribution.

Where the prefectural governor finds that the valuation of fixed assets in a municipality under Article 409, paragraphs (1) through (3) has not been carried out in accordance with the fixed asset valuation standards, the governor may make necessary adjustments to the price, etc. of those fixed assets distributed to that municipality under paragraph (1).

The Minister for Internal Affairs and Communications must hear the opinions of the Local Finance Council:

when intending to designate fixed assets under paragraph (1), item (i) or (ii);

when intending to determine and distribute the price, etc. of fixed assets under paragraph (1);

when receiving an application for adjustment of the distribution of the price, etc. of fixed assets under paragraph (4);

when intending to adjust the distribution of the price, etc. of fixed assets under the preceding paragraph.

When the Minister for Internal Affairs and Communications intends to make a ruling on a request for review concerning the determination or distribution of the price, etc. of fixed assets under Article 389, paragraph (1), the Minister must hear the opinion of the Local Finance Council.

Where the prefectural governor or the Minister for Internal Affairs and Communications has determined the price, etc. of fixed assets under Article 389, paragraph (1), the governor or the Minister must, without delay, notify the owner of the fixed assets of that price, etc.

Where the owner of a fixed asset who has made a declaration under the following Article (limited to a person who made that declaration under Article 747-2, paragraph (1); the same applies hereinafter in this paragraph) has applied to be notified, by electronic or magnetic means (meaning means using an electronic data processing system or other means utilizing information and communications technology that are specified by Ministerial Order; the same applies hereinafter in this paragraph), of the price, etc. to be notified to that owner under the preceding paragraph, the prefectural governor or the Minister for Internal Affairs and Communications must notify that owner of the price, etc. by electronic or magnetic means.

A notice given under the preceding paragraph is deemed to have reached the owner of the fixed assets prescribed in that paragraph at the time when it is recorded in a file kept on a computer (including input-output devices) used by that owner.

The owner of a fixed asset to be valued by the prefectural governor or the Minister for Internal Affairs and Communications under Article 389, paragraph (1), who has a tax liability for fixed assets tax, must, as provided by Ministerial Order, declare to the prefectural governor or the Minister, by January 31 each year, with respect to that fixed asset as of January 1 of each year, the matters to be registered in the fixed assets tax ledger, the matters entered therein, and other matters necessary for the valuation of the fixed asset.

If a person fails to make a declaration on the matters to be declared under the preceding Article or makes a false declaration, the person who committed the violation is to be punished by imprisonment for not more than one year or a fine of not more than 500,000 yen.

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

Where necessary for an examination concerning the determination of the price, etc. of fixed assets under Article 389, paragraph (1), the advice under Article 401, item (iv) or the recommendation under Article 419, paragraph (1), a prefectural official designated by the prefectural governor (hereinafter in this Article and Article 397 referred to as a "designated prefectural official"), and where necessary for the advice under Article 388, paragraph (4), item (ii), an examination concerning the determination of the price, etc. of fixed assets under Article 389, paragraph (1) or the instruction under Article 422-2, paragraph (1), an official of the Ministry of Internal Affairs and Communications designated by the Minister for Internal Affairs and Communications (hereinafter in this Article through Article 397 referred to as an "official designated by the Minister for Internal Affairs and Communications"), may, respectively, question the following persons, or inspect the books and documents and other articles relating to the business of the persons listed in items (i) through (iii), or request the presentation or submission of those articles (including copies thereof).

a person liable for tax or a person found to have tax liability;

a person found to be obliged to provide money or goods to the person listed in the preceding item;

a person found to have delivered to the person listed in item (i) a house owned by that person;

a person other than those listed in the preceding three items who is found to be directly related to the assessment and collection of that fixed assets tax.

A successor corporation in a company split relating to a split in which the person listed in item (i) of the preceding paragraph is the splitting corporation, and a splitting corporation relating to a split in which the person listed in that item is the successor corporation in a company split, are to be included in the persons found to be obliged to provide money or goods prescribed in item (ii) of that paragraph.

In the case referred to in paragraph (1), the designated prefectural official or the official designated by the Minister for Internal Affairs and Communications must carry a certificate proving his or her status and present it when requested by a person concerned.

A designated prefectural official or an official designated by the Minister for Internal Affairs and Communications may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

The authority of a designated prefectural official or an official designated by the Minister for Internal Affairs and Communications under the provisions of paragraph (1) or the preceding paragraph must not be construed as having been granted for criminal investigation.