How to determine the price of fixed assets

The price of fixed assets is evaluated based on the "Fixed Asset Valuation Standards" set by the Minister of Internal Affairs and Communications, and the mayor determines the price and registers it in the fixed asset tax book.
Land and houses prices are to be reviewed every three years, and this is called revaluation. FY2024 is the year of revaluation.
As a general rule, land and house prices are unchanged for the year following the revaluation year and the next two years. However, for land, exceptions are limited to cases where there is a change in the ground level, a joint brush, etc., or when there is a significant decline in land prices, or when there is an extension or remodeling or partial demolition. Review the price.
Regarding the valuation of depreciable assets, which are business assets, the status as of January 1 of each year must be declared by January 31, and based on that, the price is calculated every year.

The land price is calculated based on the normal trading price calculated based on the actual trading value based on the "Fixed Asset Valuation Standards". However, with regard to the prices of residential land and land comparable to residential land, the evaluation has been made to balance and optimize the evaluation with a target of 70% of the published land price since the revaluation in fiscal 1994. We are promoting the balance and appropriateness of evaluations.

The valuation of the house is to be based on the rebuilding price in the "Fixed Asset Valuation Standards".
This is based on the construction cost (reconstruction price) required when a new house similar to the house to be evaluated is built, and multiplied by the depreciation rate (aging deduction correction rate) according to the number of years elapsed since the new construction. Is a method to calculate.
The details of how to calculate the price is as follows.

1. Evaluation of new extension houses
   In the case of a new extension house, on-site survey of the materials and equipment used for roofs, outer walls, interiors of each room, etc. (Note 1), and apply the unit price specified in the “Fixed Asset Valuation Standards” for those materials. And calculate the rebuilding price. The price is calculated by multiplying the calculated rebuilding price by the depreciation rate (aging deduction correction rate) due to the passage of one year (Note 2).
   (Note 1) Investigators (the ward office Tax Division house staff) visits and visits a site survey of the house.
   (Note 2) New houses are taxed from the year following the year of new construction.

   

2. Houses other than new extensions (existing houses)
   Houses other than new extensions will be reviewed in the year of revaluation every three years. The revised price is a correction rate determined in consideration of trends in building prices for three years (referred to as the rebuilding cost rating correction rate.In the revaluation in 2024, wooden houses 1.11, non-wooden houses are based on fixed asset valuation standards. ) Is indicated as a new building value, and multiplying the calculated rebuilding price by the aging deduction correction rate according to the number of years elapsed since the new construction. Then, compare the revised price with the price before the review to determine whichever is lower.
   

Newly built or renovated houses will be subject to property tax and city planning tax from the year following completion.
In order to calculate the valuation that forms the basis of these taxes, an investigator (the ward office Tax Division house staff) will visit and investigate the house based on the Local Tax Law.
Specifically, we will investigate the status of roofs, outer walls, interiors of each room, and building equipment.
When you visit the survey, we will contact you in advance and adjust the survey schedule, so we ask for your understanding and cooperation.
In addition, the investigator carries a "tax collection officer's card" and "fixed asset evaluation assistant card" at the time of investigation.
(Measures for the spread of COVID-19 infection)
Investigators will wear masks during the survey to prevent COVID-19 infection.

If you have any questions, please contact your ward office.