Local Tax Act

In order to properly value fixed assets under the direction of the mayor of a municipality and to assist in the determination of prices made by the mayor, fixed asset valuers are to be established in each municipality.

The fixed asset valuer is selected by the mayor of the municipality, with the consent of the municipal assembly, from among persons with knowledge and experience in the valuation of fixed assets.

The mayors of two or more municipalities may, with the consent of the municipal assemblies of those municipalities, jointly select the same person as the fixed asset valuer of each of those municipalities by agreement among them. For selection in this case, the consent of the assembly under the preceding paragraph is not required.

If there are few fixed assets on which fixed assets tax is imposed, a municipality may, notwithstanding paragraph (1), have the mayor of the municipality perform the duties of fixed asset valuers under the provisions of this Act, without appointing fixed asset valuers.

If the mayor of the municipality finds it necessary, the mayor may select assistant fixed asset valuers from among persons having knowledge and experience regarding the valuation of fixed assets and have them assist in the duties of fixed asset valuers.

A fixed asset valuer may not concurrently hold any of the following offices.

a member of the National Diet or a member of the assembly of a local government;

a member of an agricultural committee;

a member of a fixed asset valuation review board.

A fixed asset valuer may not be a person who undertakes contract work for the municipality concerned, or who undertakes contract work for the head of the municipality concerned or a person delegated by that head with respect to a business whose expenses are borne by the municipality concerned, or the manager of such a person, or an unlimited liability partner, director, executive officer or auditor of a juridical person that mainly engages in the same acts, or a person equivalent to any of them, or a manager or liquidator of such a juridical person.

A person who falls under any of the following items may not be a fixed asset valuer.

a person who has received an order commencing bankruptcy proceedings and has not had their rights restored;

a person who has committed a crime in connection with the duties of a fixed asset valuer and been sentenced to a penalty;

excluding the persons prescribed in the preceding item, a person who has been sentenced to imprisonment or a heavier penalty and for whom two years have not elapsed since the completion of the execution of the sentence or since the person ceased to be subject to its execution;

a national public employee or an employee of a local government who has been subject to a disposition of disciplinary dismissal and for whom two years have not elapsed from the date of that disposition;

a person specified by Order of the Ministry of Internal Affairs and Communications as unable to properly perform the duties of a fixed asset valuer due to mental or physical impairment.

The mayor of the municipality must have a fixed asset valuer or assistant fixed asset valuer conduct an on-site examination of the status of the fixed assets located in the municipality concerned at least once every year.

When valuing land or houses under the provisions of the preceding paragraph, if there is a price that the prefectural governor has notified, under Article 73-21, paragraph (3), to the mayor of the municipality in which that land or house is located, a fixed asset valuer must value that land or house on the basis of the price so notified, except where it is difficult to follow the price so notified because of a change of land category, rebuilding, damage or other special circumstances regarding that land or house.

When valuing depreciable assets located in the municipality concerned on the basis of the result of the on-site examination under the preceding Article, a fixed asset valuer must value those depreciable assets at their price as of the assessment date pertaining to those depreciable assets.

When a fixed asset valuer has made a valuation under the preceding three paragraphs, the valuer must without delay prepare a valuation report as provided by Order of the Ministry of Internal Affairs and Communications and submit it to the mayor of the municipality.

Upon receiving the valuation report prescribed in paragraph (4) of the preceding Article, the mayor of the municipality must, based on it, determine the price, etc. of fixed assets by March 31 each year; provided, however, that in the case of a disaster or other special circumstances, the determination may be made on or after April 1.

When the mayor of the municipality has determined the price, etc. of fixed assets under the preceding paragraph, the mayor must without delay, as provided by Order of the Ministry of Internal Affairs and Communications, make available for public inspection a document stating the standard price of building land for each area.

When the mayor of the municipality has determined the price, etc. of fixed assets under paragraph (1) of the preceding Article, the mayor must immediately register the price, etc. of those fixed assets in the fixed assets tax ledger.

When the mayor of the municipality has registered all of the price, etc. of fixed assets that is to be registered in the fixed assets tax ledger under the preceding paragraph, the mayor must immediately give public notice to that effect.

Where the tax base for fixed assets tax imposed on base-year land or houses in the second year or the third year is based on the base-year price, the base-year price registered in the land tax ledgers, etc. or the house tax ledgers, etc. is deemed to be the price registered in the land tax ledgers, etc. or the house tax ledgers, etc. in the second year or the third year; and where the tax base for fixed assets tax imposed on base-year land or houses or land or houses for the second year in the third year is based on the comparison-based price, that comparison-based price registered in the land tax ledgers, etc. or the house tax ledgers, etc. is deemed to be the comparison-based price registered in the land tax ledgers, etc. or the house tax ledgers, etc. in the third year.

The mayor of a municipality must prepare, as provided by Order of the Ministry of Internal Affairs and Communications, by March 31 each year, a register stating the location, lot number, land category, land area (excluding, for land to which Article 348 applies, the area of the part to which that Article applies) and price relating to fixed assets tax for the relevant fiscal year of land registered in the land tax ledgers, etc. (limited to land on which fixed assets tax may be imposed under the provisions of this Act) (referred to in the following paragraph, in paragraphs (1) and (2) of the following Article, and in Article 419, paragraphs (4) through (7) as the "land price, etc. inspection register"), and a book stating the location, house number, type, structure, floor area (excluding, for a house to which Article 348 applies, the area of the part to which that Article applies) and price relating to fixed assets tax for the relevant fiscal year of houses registered in the house tax ledger, etc. (limited to houses on which fixed assets tax may be imposed under the provisions of this Act) (referred to in the following paragraph, in paragraphs (1) and (2) of the following Article, and in Article 419, paragraphs (4) through (7) as the "house price, etc. inspection register"); provided, however, that in the case of disasters or other special circumstances, they may be prepared on or after April 1.

The mayor of a municipality may, as provided by Order of the Ministry of Internal Affairs and Communications, prepare the land price, etc. inspection register or the house price, etc. inspection register under the preceding paragraph by creating electronic or magnetic records.

In order that a taxpayer of fixed assets tax can compare the price registered in the land tax ledger, etc. or the house tax ledger, etc. with respect to the land or house relating to the fixed assets tax for the relevant fiscal year that the taxpayer is to pay with the prices of other land or houses within the municipality in which that land or house is located, the mayor of a municipality must, from April 1 each year until a date on or after the later of April 20 or the first due date for payment of the relevant fiscal year, at a place designated by the mayor, make the land price, etc. inspection register or a copy thereof (where the preparation of that land price, etc. inspection register is carried out by creating electronic or magnetic records under paragraph (2) of the preceding Article, a document stating the matters recorded in that land price, etc. inspection register; the same applies in the following paragraph) available for inspection by taxpayers of fixed assets tax imposed on land located within the municipality, and make the house price, etc. inspection register or a copy thereof (where the preparation of that house price, etc. inspection register is carried out by creating electronic or magnetic records under paragraph (2) of the preceding Article, a document stating the matters recorded in that house price, etc. inspection register; the same applies in the following paragraph) available for inspection by taxpayers of fixed assets tax imposed on houses located within the municipality; provided, however, that in the case of disasters or other special circumstances, the inspection period may be from a day on or after April 2 until a day on or after the later of the day on which 20 days have elapsed from that day or the first due date for payment of the relevant fiscal year.

When the mayor of a municipality makes the land price, etc. inspection register or a copy thereof, or the house price, etc. inspection register or a copy thereof, available for inspection by taxpayers of fixed assets tax imposed on land or houses located within the municipality under the preceding paragraph, the mayor may make the matters entered in the land price, etc. inspection register or the house price, etc. inspection register (or, where the preparation of that land price, etc. inspection register or house price, etc. inspection register is carried out by creating electronic or magnetic records under paragraph (2) of the preceding Article, recorded therein) available for inspection by displaying them on a screen.

The mayor of a municipality must give public notice in advance of the place and period of inspection under paragraph (1).