Local Tax Act

With regard to a matter of particular benefit to a part of a local government, the local government may impose tax non-uniformly or impose tax on a part of it.

If the head of a local government differs in opinion from the head of another local government regarding the attribution of the power to tax or the application of any other provision of this Act, and their consultation fails to reach agreement, the head of the local government must, except in the case where Article 33 of the Residential Basic Book Act (Act No. 81 of 1967) applies, file an application with the Minister for Internal Affairs and Communications (or, where the local governments concerned are municipalities within the area of a prefecture, the prefectural governor) seeking a decision.

Upon receiving an application seeking a decision under the preceding paragraph, the Minister for Internal Affairs and Communications or the prefectural governor must make a decision within 60 days from the day of receiving the application and, without delay, notify the head of the local government concerned to that effect.

The application under paragraph (1) and the decision under the preceding paragraph must be made in writing.

A mayor of a municipality who is dissatisfied with a decision of the prefectural governor under paragraph (2) may, within 30 days from the day of receiving the notice referred to in that paragraph, apply to the Minister for Internal Affairs and Communications seeking a ruling.

Where the notice referred to in paragraph (2) is sent by mail or by correspondence delivery provided for in Article 2, paragraph (2) of the Act on Correspondence Delivery by Private Business Operators (Act No. 99 of 2002) by a general correspondence delivery business operator provided for in paragraph (6) of that Article or a specified correspondence delivery business operator provided for in paragraph (9) of that Article (hereinafter referred to as "correspondence delivery"), and the date of its arrival is unclear, the day on which four days have elapsed from the date of dispatch is deemed to be the day of receiving the notice referred to in paragraph (2). In this case, where the mayor of the municipality can prove the date of arrival, the date to which that proof relates is deemed to be the day of receiving the notice.

Where documents relating to an application under paragraph (4) are sent by mail or correspondence delivery, the number of days required for sending is not counted in the period referred to in that paragraph.

Upon receiving an application under paragraph (4), the Minister for Internal Affairs and Communications must make the ruling within 60 days from that day.

Having made the ruling referred to in the preceding paragraph, the Minister for Internal Affairs and Communications must, without delay, notify the head of the local government concerned to that effect.

When the Minister for Internal Affairs and Communications intends to make the decision referred to in paragraph (2) or the ruling referred to in paragraph (7), the Minister must hear the opinion of the Local Finance Council.

The head of a local government concerned who finds that there is illegality in a decision of the Minister for Internal Affairs and Communications under paragraph (2) or a ruling of the Minister under paragraph (7) may file an action with a court within 30 days from the day of receiving notice of that decision or ruling.

In the case where there has been an abolition, establishment, division or merger of municipalities (excluding the case falling under the main clause of paragraph (1) of the following Article), the right aimed at the collection of local government levies relating to a municipality extinguished by that abolition, establishment, division or merger (hereinafter in this Article referred to as an "extinguished municipality") (hereinafter in this Article referred to as "rights to the collections of an extinguished municipality") is succeeded to, in accordance with the area of the municipality to which the area of that extinguished municipality has newly come to belong (hereinafter in this Article referred to as the "succeeding municipality"), by that succeeding municipality. In this case, with regard to the rights to the collections of an extinguished municipality, the assessment and collection and other procedures carried out by the extinguished municipality and the returns, requests for review and other procedures filed with the extinguished municipality are deemed to be, respectively, the assessment and collection and other procedures carried out by the succeeding municipality and the returns, requests for review and other procedures filed with the succeeding municipality.

In the case where there are two or more succeeding municipalities that succeed to rights to the collections of an extinguished municipality under the provisions of the preceding paragraph, and the heads of those succeeding municipalities differ in opinion regarding the rights to the collections of that extinguished municipality that each of those succeeding municipalities is to succeed to, and their consultation fails to reach agreement, they must file an application with the prefectural governor (or, where those succeeding municipalities extend over the areas of two or more prefectures, the Minister for Internal Affairs and Communications) seeking a decision.

The provisions of Article 8, paragraphs (2) through (10) apply mutatis mutandis to the application referred to in the preceding paragraph and the decision of the prefectural governor or the Minister for Internal Affairs and Communications relating to that application.

In the case where a succeeding municipality succeeds to rights to the collections of an extinguished municipality under the preceding three paragraphs, unless that succeeding municipality otherwise provides by Municipal Ordinance, the assessment and collection of the local government levies relating to that extinguished municipality that it is to succeed to is to be governed by the Municipal Ordinances, rules and other provisions of the extinguished municipality that were established regarding the assessment and collection of local government levies relating to that extinguished municipality. In this case, where the succeeding municipality intends to impose an ordinary tax imposed under Article 5, paragraph (3) or an earmarked tax imposed under paragraph (7) of that Article (hereinafter in this paragraph referred to as a "non-statutory tax"), and, because among the local government levies relating to that extinguished municipality that the succeeding municipality succeeds to there is a non-statutory tax of the same kind with the same object of taxation as these, the same kind of non-statutory tax would be imposed in duplicate, the succeeding municipality must, as provided by its Municipal Ordinance, impose any one of these non-statutory taxes on the person liable for tax for the non-statutory tax relating to that extinguished municipality.

When there has been a boundary change of municipalities, or in the case where there has been an abolition, establishment, division or merger of municipalities and the municipality to which the whole or part of the area of a municipality newly established by that abolition, establishment, division or merger formerly belonged continues to exist, the right aimed at the collection of the local government levies listed in the following items relating to the area in which that boundary change occurred, or to the whole or part of the area of the newly established municipality, of the municipality to which that area formerly belonged (hereinafter in this Article referred to as the "former municipality") (for local government levies relating to the local tax listed in item (ii), limited to those to be imposed for the fiscal year that includes the day of that boundary change or abolition, establishment, division or merger or any subsequent fiscal year) is succeeded to, in accordance with that area, by the municipality to which that area has newly come to belong (hereinafter in this Article referred to as the "new municipality"); provided, however, that where the former municipality and the new municipality have made a different provision from this upon consultation, it may be as so provided.

in the case of local government levies relating to a local tax collected by the method of filing and payment or filing and payment-in, those whose due date for payment has not arrived before the day of that boundary change or abolition, establishment, division or merger and that have not been received by that former municipality;

in the case of local government levies relating to a local tax other than those in the preceding item, those that have not been received by that former municipality before the day of that boundary change or abolition, establishment, division or merger.

The provisions of Article 8-2, paragraph (1), second sentence and paragraphs (2) through (4) apply mutatis mutandis to the case where the new municipality succeeds to the rights relating to the local government levies of the former municipality under the main clause of the preceding paragraph, and the provisions of Article 8-2, paragraph (1), second sentence and paragraph (4) apply mutatis mutandis to the case where the new municipality succeeds to the rights relating to the local government levies of the former municipality by consultation under the proviso to the preceding paragraph.

In the case where the new municipality has succeeded to the rights relating to the local government levies of the former municipality under the preceding two paragraphs, when it intends to assess and collect those levies, the former municipality must provide necessary assistance in response to a request from the new municipality.

Where, due to the establishment of a municipality straddling prefectural boundaries or a change in its boundaries, there has been a change in the boundaries of prefectures, the succession to the right aimed at the collection of local government levies of the prefectures relating to the area in which that boundary change occurred is to be determined by consultation among the prefectures concerned, following the methods provided for in the preceding two Articles.

The provisions of Article 8 apply mutatis mutandis to the case where the consultation referred to in the preceding paragraph fails to reach agreement, and the provisions of Article 8-2, paragraph (1), second sentence and paragraph (4) apply mutatis mutandis to the case where the right aimed at the collection of local government levies of the prefectures relating to the area in which the boundary change occurred has been succeeded to by the consultation referred to in the preceding paragraph.

Beyond what is provided for in the preceding three Articles, necessary matters concerning the succession to the power to tax in the case where there has been an abolition, establishment, division or merger, or a boundary change, of municipalities, or in the case where, due to the establishment of a municipality straddling prefectural boundaries or a change in its boundaries, there has been a change in the boundaries of prefectures, are specified by Cabinet Order.