Local Tax Act

In the case of assessing and collecting real property acquisition tax imposed on the acquisition of land, where the acquirer of that land has, as provided by the Prefectural Ordinance of the prefecture concerned, made a declaration to the effect that the provisions of Article 73-24, paragraph (1), item (i), paragraph (2), item (i), or paragraph (3) are to apply to that real property acquisition tax, and that declaration is found to be true, a prefecture is to defer the collection of the portion of the amount of real property acquisition tax relating to that land that is equivalent to the amount to be reduced under those provisions, for a period limited to within two years from the day of acquisition in the case of the acquisition of land to which the provisions of paragraph (1), item (i) of the preceding Article apply, within one year from the day of acquisition in the case of the acquisition of land to which the provisions of paragraph (2), item (i) of that Article apply, within one year and six months from the day of acquisition in the case of the acquisition of land to which the provisions of paragraph (3), item (i) of that Article apply, and within six months from the day of acquisition of that land in the case of the acquisition of land to which the provisions of item (ii) of that paragraph apply (limited to acquisition made before the day on which the acquisition of the existing house not meeting earthquake resistance standards on that land came to fall under the provisions of Article 73-27-2, paragraph (1)).

The provisions of Article 15-2-2 and Article 15-2-3, paragraph (1) apply mutatis mutandis to the deferral of collection under the provisions of the preceding paragraph.

When a prefecture has deferred collection pursuant to the provisions of paragraph (1), it is to remit, out of the amount of delinquency charge relating to the amount of tax for which collection was deferred, the portion corresponding to the period for which collection was deferred.

Where a prefecture has deferred collection pursuant to the provisions of paragraph (1) of the preceding Article, and it becomes clear that the provisions of Article 73-24, paragraph (1), item (i), paragraph (2), item (i), or paragraph (3) do not apply to the real property acquisition tax relating to that deferral of collection, or that there has been a change in part of the grounds for the deferral of collection, the prefecture may rescind the deferral of collection with respect to all or part of the amount of tax for which collection was deferred, and collect it immediately.

The provisions of Article 15-3, paragraph (3) apply mutatis mutandis to the rescission of the deferral of collection under the provisions of the preceding paragraph.

Where a prefecture has collected local government levies relating to real property acquisition tax imposed on the acquisition of land, and the provisions of Article 73-24, paragraph (1), item (i), paragraph (2), item (i), or paragraph (3) have come to apply to that real property acquisition tax, it is to refund, upon application by the person liable for tax, the amount of tax equivalent to the amount to be reduced under those provisions and the local government levies relating thereto.

The provisions of Article 73-2, paragraphs (9) and (10) apply mutatis mutandis to the case of making a refund under the provisions of the preceding paragraph.

Where an individual acquires an existing house not meeting earthquake resistance standards, and that individual, within six months from the day of acquiring that existing house not meeting earthquake resistance standards, carries out seismic retrofitting on that existing house (meaning seismic retrofitting prescribed in Article 2, paragraph (2) of the Act on Promotion of Seismic Retrofitting of Buildings (Act No. 123 of 1995), excluding partial removal and site preparation), obtains certification, as provided by Order of the Ministry of Internal Affairs and Communications, that the dwelling conforms to earthquake resistance standards, and uses that dwelling for his or her own residence, a prefecture is to reduce, from the amount of real property acquisition tax imposed on the acquisition of that existing house not meeting earthquake resistance standards, the amount obtained by multiplying the tax rate by the amount that was to be deducted pursuant to the provisions of Article 73-14, paragraph (1) of the Local Tax Act in force at the time when that existing house not meeting earthquake resistance standards was newly constructed.

Where a prefecture assesses and collects real property acquisition tax imposed on the acquisition of a dwelling, and the acquirer of that dwelling has, as provided by the Prefectural Ordinance of the prefecture concerned, made a declaration to the effect that the provisions of the preceding paragraph are to apply to that real property acquisition tax, and that declaration is found to be true, the prefecture is to defer the collection of the portion of the amount of real property acquisition tax relating to that dwelling that is equivalent to the amount to be reduced under the provisions of that paragraph, for a period limited to within six months from the day of that acquisition.

The provisions of Article 73-25, paragraphs (2) and (3) and the preceding two Articles apply mutatis mutandis to the deferral of collection and rescission thereof of the amount of real property acquisition tax in the case referred to in the preceding paragraph, and to the refund of local government levies relating to that real property acquisition tax in the case referred to in paragraph (1).

Where a person who has acquired real property, within one year from the date of acquiring that real property, has received compensation upon having real property other than that real property expropriated for use in a public works project, has transferred real property other than that real property to a person carrying out a public works project for use in that public works project, or has received relocation compensation for a house that had been built on land expropriated or transferred for use in a public works project, or where a person has transferred to a local government, a public land development corporation or the Urban Renaissance Agency real property, other than that real property, that is specified by Cabinet Order as real property recognized as certain to be used for a public works project, or has received relocation compensation for a house that had been built on the land relating to that transfer, and that real property is recognized as a substitute for the real property that was so expropriated or transferred, or for which relocation compensation was received (hereinafter referred to as "expropriated real property, etc." in this paragraph), the prefecture is to reduce the real property acquisition tax imposed on the acquisition of that real property by deducting from the amount of that tax the amount obtained by multiplying the amount equivalent to the price of the expropriated real property, etc. registered in the fixed assets tax ledgers (or, where the price of the expropriated real property, etc. is not registered in the fixed assets tax ledgers, the price determined by the prefectural governor in accordance with the fixed assets valuation standards under Article 388, paragraph (1), as provided by Cabinet Order) by the tax rate.

In the case of assessing and collecting the real property acquisition tax imposed on the acquisition of real property, where the acquirer of that real property has filed a declaration, as provided by the Prefectural Ordinance of that prefecture, to the effect that the provisions of the preceding paragraph are to apply to that real property acquisition tax, and the declaration is recognized as true, the prefecture is to defer collection of the portion of the real property acquisition tax amount relating to that real property that is equivalent to the amount to be reduced under the provisions of that paragraph, for a period within one year from the date of that acquisition.

The provisions of Article 73-25, paragraphs (2) and (3), Article 73-26 and Article 73-27 apply mutatis mutandis to the deferral of collection of the real property acquisition tax amount and the cancellation thereof in the case referred to in the preceding paragraph, and to the refund of local government levies relating to that real property acquisition tax in the case referred to in paragraph (1).

Where a holder of property transferred as security has acquired property transferred as security (excluding that to which the main clause of Article 73-2, paragraph (2) applies), and, due to the extinguishment of the claim secured by that property transferred as security, has transferred that property from the holder of property transferred as security to the settlor of the property transferred as security within two years from the date on which that property transferred as security was established, the prefecture is to exempt the holder of property transferred as security from the tax liability relating to local government levies on the real property acquisition tax on the acquisition of that property transferred as security by the holder of property transferred as security.

In the case of assessing and collecting the real property acquisition tax imposed on the acquisition of real property, where the acquirer of that real property has filed a declaration, as provided by the Prefectural Ordinance of that prefecture, to the effect that the provisions of the preceding paragraph are to apply to that real property acquisition tax, and the declaration is recognized as true, the prefecture is to defer collection of the real property acquisition tax amount relating to that real property, for a period within two years from the date of that acquisition.

The provisions of Article 73-25, paragraphs (2) and (3) and Article 73-26 apply mutatis mutandis to the deferral of collection under the provisions of the preceding paragraph.

Where a prefecture has collected local government levies relating to the real property acquisition tax imposed on the acquisition of real property and the provisions of paragraph (1) have come to apply to that real property acquisition tax, the prefecture is to refund those local government levies upon application by that holder of property transferred as security.

The provisions of Article 73-2, paragraphs (9) and (10) apply mutatis mutandis to the case of making a refund under the provisions of the preceding paragraph.

Where a redevelopment company prescribed in Article 50-2, paragraph (3) of the Urban Renewal Act (hereinafter in this Article referred to as the "redevelopment company") has, in connection with the carrying out of a Type 2 urban redevelopment project prescribed in Article 2, item (i) of that Act (hereinafter in this Article referred to as a "Type 2 urban redevelopment project"), acquired the part of a building facility under Article 118-7, paragraph (1), item (iii) of that Act (hereinafter in this Article referred to as a "part of a building facility"), and the prospective transferee prescribed in Article 118-11, paragraph (1) of that Act acquires that part of a building facility on the day following the day of the public notice of completion of building construction under Article 118-17 of that Act, or where a redevelopment company has, in connection with the carrying out of a Type 2 urban redevelopment project, acquired real property to be used for a public facility prescribed in Article 2, item (iv) of that Act (hereinafter in this Article referred to as a "public facility"), and the State or a local government acquires that real property on the day following the day of the public notice of completion of works for the improvement of public facilities under Article 118-20, paragraph (1) of that Act, the prefecture is to exempt that redevelopment company from the tax liability relating to local government levies on the real property acquisition tax on the acquisition of that real property by that redevelopment company.

The provisions of paragraphs (2) through (5) of the preceding Article apply mutatis mutandis to the deferral of collection of real property acquisition tax amounts and the refund of local government levies relating to that real property acquisition tax in the case where a redevelopment company has acquired a part of a building facility in connection with the carrying out of a Type 2 urban redevelopment project or has acquired real property to be used for a public facility. In this case, the phrase "within two years from the date of that acquisition" in paragraph (2) of that Article is deemed to be replaced with "in the case of acquisition of a part of a building facility, until the day following the day of the public notice of completion of building construction under Article 118-17 of the Urban Renewal Act, and in the case of acquisition of real property to be used for a public facility, until the day following the day of the public notice of completion of works for the improvement of public facilities under Article 118-20, paragraph (1) of that Act", and the phrase "that holder of property transferred as security" in paragraph (4) of that Article is deemed to be replaced with "that redevelopment company".