Local Tax Act

A prefectural fixed asset valuation council is to be established in each prefecture.

The prefectural fixed asset valuation council is to investigate and deliberate on the matters listed in the items of the following paragraph and other matters concerning the valuation of fixed assets on which the prefectural governor seeks its opinion.

The prefectural governor must hear the opinion of the prefectural fixed asset valuation council on the matters listed in the following items:

matters concerning the details of the fixed asset valuation standards under Article 388, paragraph (1) that the prefectural governor determines;

the recommendation under Article 419, paragraph (1).

The members of the prefectural fixed asset valuation council are appointed by the prefectural governor from among officials of the relevant local administrative organs of the national government, officials of the prefecture, officials of municipalities within the area of the prefecture, and persons with knowledge and experience in the valuation of fixed assets.

In addition to what is provided for in the preceding paragraph, matters necessary for the organization and operation of the prefectural fixed asset valuation council are provided for by the Prefectural Ordinance of that prefecture.

The provisions of Article 388 or Article 401 must not be construed as granting the Minister for Internal Affairs and Communications or the prefectural governor the authority to direct municipal tax collection officials or fixed asset valuers.

The mayor of a municipality must determine the price of fixed assets in accordance with the fixed asset valuation standards under Article 388, paragraph (1), except where the prefectural governor or the Minister for Internal Affairs and Communications values fixed assets under Article 389 or Article 743.

Municipal officials engaged in affairs relating to the valuation of fixed assets must endeavor to make a fair valuation on the advice of the Minister for Internal Affairs and Communications and the prefectural governor and by every means, such as on-site examinations conducted together with taxpayers, questioning of taxpayers, and examination of taxpayers' returns.

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.