Local Tax Act

A designated city, etc. may not impose business office tax on the State, tax-exempt incorporated administrative agencies, or public corporations prescribed in Article 2, item (v) of the Corporation Tax Act (excluding those that are tax-exempt incorporated administrative agencies).

A designated city, etc. may not impose business office tax on a business, other than a profit-making business, conducted at an office or place of business by a public interest corporation, etc. prescribed in Article 2, item (vi) of the Corporation Tax Act (including disaster prevention block improvement project associations, management association corporations and housing complex management association corporations, condominium reconstruction associations, condominium sale associations, condominium demolition associations and site division associations, authorized neighborhood associations prescribed in Article 260-2, paragraph (7) of the Local Autonomy Act, political parties, etc. that are corporations prescribed in Article 7-2, paragraph (1) of the Act on Granting of Juridical Personality to Political Party Receiving Political Party Grants, and corporations prescribed in Article 2, paragraph (2) of the Act on Promotion of Specified Non-profit Activities) or an association or foundation without juridical personality.

A designated city, etc. may not impose business office tax on a business conducted at an office or place of business relating to the following facilities:

a museum prescribed in Article 2, paragraph (1) of the Museum Act or other educational or cultural facility specified by Cabinet Order (excluding those falling under item (x)-4);

a public bath prescribed in Article 1, paragraph (1) of the Public Bath Houses Act (Act No. 139 of 1948) that is specified by Cabinet Order;

a slaughterhouse prescribed in Article 3, paragraph (2) of the Slaughterhouse Act (Act No. 114 of 1953);

a dead livestock handling facility prescribed in Article 1, paragraph (3) of the Rendering Plant Control Act (Act No. 140 of 1948);

a waterworks facility prescribed in Article 3, paragraph (8) of the Water Supply Act (Act No. 177 of 1957);

a facility used for a business of collecting, transporting or disposing of general waste conducted with a permission under Article 7, paragraph (1) or (6) of the Act on Waste Management and Public Cleaning or an authorization under Article 9-8, paragraph (1) of that Act, or by commission from a municipality under the proviso to Article 7, paragraph (1) of that Act or the proviso to paragraph (6) of that Article;

a hospital prescribed in Article 1-5, paragraph (1) of the Medical Care Act and a clinic prescribed in paragraph (2) of that Article, a long-term care health facility prescribed in Article 8, paragraph (27) of the Long-Term Care Insurance Act that is specified by Cabinet Order and a long-term care medical institute prescribed in paragraph (28) of that Article that is specified by Cabinet Order, and a training school for medical personnel such as nurses, assistant nurses, dental hygienists and others specified by Cabinet Order;

a protective facility prescribed in Article 38, paragraph (1) of the Public Assistance Act that is specified by Cabinet Order;

a facility used for a small-scale childcare business prescribed in Article 6-3, paragraph (10) of the Child Welfare Act;

a child welfare facility prescribed in Article 7, paragraph (1) of the Child Welfare Act that is specified by Cabinet Order (excluding those falling under the following item);

an authorized children's center prescribed in Article 2, paragraph (6) of the Act on Advancement of Comprehensive Service Related to Education, Child Care, etc. of Preschool Children;

a welfare facility for the elderly prescribed in Article 5-3 of the Act on Social Welfare for the Elderly that is specified by Cabinet Order;

a facility designed to support persons with disabilities prescribed in Article 5, paragraph (11) of the Act on Providing Comprehensive Support for the Daily Life and Life in Society of Persons with Disabilities;

in addition to the facilities listed in items (x) through the preceding item, a facility used for social welfare services prescribed in Article 2, paragraph (1) of the Social Welfare Act that is specified by Cabinet Order;

a facility used for a comprehensive support business prescribed in Article 115-46, paragraph (1) of the Long-Term Care Insurance Act;

a facility used for a family-based childcare business prescribed in Article 6-3, paragraph (9) of the Child Welfare Act, a home-visit childcare business prescribed in paragraph (11) of that Article, or a workplace-based childcare business prescribed in paragraph (12) of that Article;

a facility specified by Cabinet Order that is used directly for production by a person engaged in agriculture, forestry or fisheries;

a facility specified by Cabinet Order that an agricultural cooperative, fisheries cooperative, forestry cooperative or other corporation specified by Cabinet Order provides for the joint use of persons engaged in agriculture, forestry and fisheries;

a wholesale market prescribed in Article 2, paragraph (2) of the Wholesale Market Act and a facility specified by Cabinet Order as supplementing its functions;

a facility specified by Cabinet Order that is used for the general power transmission and distribution business prescribed in Article 2, paragraph (1), item (viii) of the Electricity Business Act, the power transmission business prescribed in item (x) of that paragraph, the power distribution business prescribed in item (xi)-2 of that paragraph, the power generation business prescribed in item (xiv) of that paragraph, or the specified wholesale supply business prescribed in item (xv)-3 of that paragraph;

a facility specified by Cabinet Order that is used for the general gas pipeline business prescribed in Article 2, paragraph (5) of the Gas Business Act or the gas manufacturing business prescribed in paragraph (9) of that Article (limited to a business where the gas manufactured by that gas manufacturing business is received, directly or indirectly, by pipelines maintained and operated by a general gas pipeline operator prescribed in paragraph (6) of that Article);

a facility specified by Cabinet Order that, among the facilities established by a person who conducts the cooperation, etc. prescribed in Article 15, paragraph (1), item (iii), (b) of the Act on the Organization for Small & Medium Enterprises and Regional Innovation, Japan, Independent Administrative Agency, or a business specified by Cabinet Order that contributes to the revitalization of the agglomeration of small and medium enterprises, with a loan of funds under (b) of that item (including a loan of funds specified by Cabinet Order as equivalent thereto) from a prefecture or the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN, is used for that business or a business specified by Cabinet Order as relating to that business;

the facilities set forth in (a) or (b):

a facility specified by Cabinet Order that, among the facilities established by a person who conducts a business prescribed in Article 2, paragraph (2), item (v), (a) of the Comprehensive Special Zones Act (Act No. 81 of 2011) (excluding those specified by Order of the Ministry of Internal Affairs and Communications) with a loan of funds under (a) of that item from a municipality (including a special ward; the same applies in (b)), is used for that business or a business specified by Cabinet Order as relating to that business; or

a facility specified by Cabinet Order that, among the facilities established by a person who conducts a business prescribed in Article 2, paragraph (3), item (v), (a) of the Comprehensive Special Zones Act (excluding those specified by Order of the Ministry of Internal Affairs and Communications) with a loan of funds under (a) of that item from a municipality, is used for that business or a business specified by Cabinet Order as relating to that business;

a facility specified by Cabinet Order that a railway operator prescribed in Article 7, paragraph (1) of the Railway Business Act or a track operator prescribed in Article 4 of the Tramway Act uses for its principal business;

a facility specified by Cabinet Order that is used for its principal business by a person who operates a general passenger motor vehicle transport business prescribed in Article 3, item (i), (a) of the Road Transport Act (limited to one that transports passengers by motor vehicles operated regularly on designated routes), a general freight motor vehicle transport business prescribed in Article 2, paragraph (2) of the Trucking Business Act (Act No. 83 of 1989), or, among freight forwarding businesses prescribed in Article 2, paragraph (6) of the Freight Forwarding Business Act (Act No. 82 of 1989), one relating to the transport of freight by a railway transport operator prescribed in paragraph (4) of that Article, or, among Type II freight forwarding businesses prescribed in paragraph (8) of that Article, one relating to the transport of freight by an air transport operator prescribed in paragraph (3) of that Article (limited to the part relating to a business that collects or delivers freight relating to that Type II freight forwarding business using motor vehicles (excluding that conducted in response to the demand of specified persons));

a facility specified by Cabinet Order that is used for a bus terminal or truck terminal prescribed in Article 2, paragraph (6) of the Motor Vehicle Terminal Act (Act No. 136 of 1959);

a facility installed at a public airport used by aircraft serving an international route, which is specified by Cabinet Order as relating to that international route;

a facility specified by Cabinet Order that is used for a telecommunications business by a person specified by Cabinet Order who conducts a telecommunications business prescribed in Article 2, item (iv) of the Telecommunications Business Act (Act No. 86 of 1984) (excluding a business that provides telecommunications services prescribed in item (iii) of that Article using mobile phone equipment, motor vehicle telephone equipment or other wireless communication equipment; the same applies hereinafter in this item), which provides telecommunications services prescribed in item (iii) of that Article by installing telecommunications circuit facilities (meaning transmission line facilities connecting the place of sending and the place of receiving, switching facilities installed integrally therewith, and their ancillary facilities) for the exclusive purpose of use by the public;

a facility specified by Cabinet Order that a general correspondence delivery service provider prescribed in Article 2, paragraph (6) of the Act on Correspondence Delivery by Private Business Operators uses for its principal business;

a facility specified by Cabinet Order that Japan Post Co., Ltd. uses for the services listed in Article 4, paragraph (1), items (i) and (vi) of the Japan Post Co., Ltd. Act (Act No. 100 of 2005) and services incidental thereto;

a welfare and benefits facility for workers specified by Cabinet Order;

an off-street parking facility prescribed in Article 2, item (ii) of the Parking Lot Act (Act No. 106 of 1957) that is specified by Cabinet Order;

a facility for parking motorized bicycles prescribed in Article 2, paragraph (1), item (x) of the Road Traffic Act (Act No. 105 of 1960) or bicycles prescribed in item (xi)-2 of that paragraph, which has been determined in a city plan as a parking lot listed in Article 11, paragraph (1), item (i) of the City Planning Act;

a facility specified by Cabinet Order that East Nippon Expressway Company Limited, Metropolitan Expressway Company Limited, Central Nippon Expressway Company Limited, West Nippon Expressway Company Limited, Hanshin Expressway Company Limited or Honshu-Shikoku Bridge Expressway Company Limited uses for the business prescribed in Article 5, paragraph (1), item (i), (ii) or (iv) of the Expressway Company Act (Act No. 99 of 2004) (for Honshu-Shikoku Bridge Expressway Company Limited, the business prescribed in item (i), (ii), (iv) or (v) of that paragraph).

A designated city, etc. may not impose the asset levy on the floor area of a place of business relating to the part specified by Cabinet Order of the following: fire-fighting equipment, etc. specified by Cabinet Order that is installed in a building or other structure subject to fire prevention prescribed in Article 17, paragraph (1) of the Fire Service Act (Act No. 186 of 1948), which is specified by Cabinet Order as a department store, inn or other such structure frequented by many persons (hereinafter in this paragraph referred to as "fire-fighting equipment, etc."); special fire defense equipment, etc. prescribed in paragraph (3) of that Article (hereinafter in this paragraph referred to as "special fire defense equipment, etc."); and evacuation facilities prescribed in Article 35 of the Building Standards Act and other facilities or equipment relating to disaster prevention specified by Cabinet Order that are installed in that structure subject to fire prevention (excluding fire-fighting equipment, etc. and special fire defense equipment, etc.).

A designated city, etc. may not impose the worker levy on the total salaries of workers relating to a facility specified by Cabinet Order that a port transportation business operator prescribed in Article 9, paragraph (1) of the Port Transportation Business Act (Act No. 161 of 1951) uses for its principal business.

In the cases prescribed in paragraphs (2) through the preceding paragraph, whether a business is one to which these provisions apply is determined according to the circumstances on the last day of the computation period of the tax base (in the case of a corporation, the business year, and in the case of an individual, the taxation period for an individual; the same applies hereinafter in this Section).

Matters necessary for the classification, with respect to the floor area of a place of business or the total salaries of workers, between that to which the provisions of paragraph (2) apply and that to which they do not where a corporation referred to in that paragraph conducts both a profit-making business and a business other than a profit-making business at the same office or place of business, the scope of the profit-making business referred to in that paragraph, and other matters necessary for the application of the provisions of paragraphs (1) through (5) are specified by Cabinet Order.