Fixed Asset Tax

Fixed asset tax is levied on individuals who own land, buildings, or depreciable assets (collectively referred to as “property”) according to the assessed value of those assets.

Those who, as of January 1st each year, own property within Niseko Town as detailed below.

If the registered owner of land or buildings listed in the registry passes away, please complete inheritance registration procedures at the Legal Affairs Bureau. From April 1, 2024, filing registration for real estate acquired through inheritance has become mandatory. This obligation also applies to inheritances prior to April 1, 2024.
If inheritance registration procedures will take time, please submit the “Notification of Designation of Representative Heir and Declaration of Current Owner of Property” to the Tax Division in Niseko Town Hall. 
The form can be downloaded from the following page:

If the owner of an unregistered building (such as a garage or warehouse) changes due to sale, inheritance, or other reasons, the ownership registration in the property ledger must be updated.
When the owner changes, please submit the “Notification of Change of Owner of Unregistered Building” to the Tax Division in Niseko Town Hall. 
The form can be downloaded from the following page:

The taxable value, which forms the basis for calculating Fixed Asset Tax, is determined based on the assessed value of the fixed assets, as established in accordance with the Fixed Asset Assessment Standards set by the Minister of Internal Affairs and Communications. Special provisions for taxable value and adjustment rates are applied as necessary.
Fixed Asset Assessment Standards are reviewed every three years (for depreciable assets, every year).
This three-year review is called a "revaluation," and the year in which it occurs is referred to as the "standard year" (the next standard year is FY 2027).
　

Land is assessed based on the normal sale price calculated from actual transaction prices and determined according to the assessment methods specified for each land category.
If land prices fall after revaluation and it is deemed inappropriate to retain the revalued price, adjustments may be made.

Buildings are assessed based on the reconstruction cost (the cost to newly construct a building identical to the existing one), with adjustments made for depreciation and wear resulting from the passage of time since construction.

Depreciable assets are assessed based on acquisition cost, with adjustments made for depreciation corresponding to the number of years since acquisition.
Businesses owning depreciable assets located in the town must report them to the town by January 31 each year.

For details on types of depreciable assets subject to Fixed Asset Tax, please see the following page:

Fixed Asset Tax = Taxable value × 1.4%

Fixed Asset Tax is not levied if the total taxable value of land, buildings, and depreciable assets does not reach the following threshold. (If tax is not levied, no tax notice will be issued.)

The tax amount is listed in the tax payment notice issued in early May every year, and the enclosed "tax statement" provides details such as the assessed value and taxable value of each fixed asset.

The Fixed Asset Tax Ledger and Property Ledger contain information on the location, assessed value, and taxable value of each owned fixed asset.
Taxpayers may apply to view these records.

Free viewing period: April 1st to May 31st (Outside this period, a fee of 300 yen per owner applies.)

In order to reduce the tax burden on residential land, the following special measures are applied depending on the size of the land.
To receive this special measure, a “Residential Land Declaration” must be submitted to the Niseko Town Tax Division by January 31 following the acquisition of the residential land.
The “Residential Land Declaration” form can be downloaded from the following page:

Residential land refers to land used as the site of a house intended for living. The applicable portion of the land is the area obtained by multiplying the land area (up to 10 times the building floor area) by the residential land rate.
The residential land rates are as follows:

Newly constructed houses are eligible for a fixed asset tax reduction for a certain period after construction.
To receive this reduction, you must submit the “Application for Tax Reduction on Newly Constructed Houses” to the Niseko Town Hall Tax Division by January 31 each year.
The application form can be downloaded from the following page:

The requirements and duration of the tax reduction are as follows:

・“Partially used for residential purposes” refers only to cases where the residential portion accounts for one-half or more of the total area.

If the floor area of the part used as a residence is up to 120m², the entire area is eligible for tax reduction. If it exceeds 120m², only the portion equivalent to 120m² is eligible.

One-half of the Fixed Asset Tax corresponding to the eligible area above will be reduced.

In addition to reductions for newly built houses, the following Fixed Asset Tax reduction systems are available:

Wagamachi Special Provisions is a system that allows municipalities to establish their own special measures (such as exemption periods or reduction rates) by ordinance, within the framework of the Local Tax Act, to better reflect local circumstances.
Under this system, special measures for the taxable standard of Fixed Asset Tax are applied to the following properties:

Under the Local Tax Act, small and medium-sized enterprises (SMEs) that have obtained certification for a “Business Innovation Plan for the Introduction of Advanced Equipment” (Sentan Setsubi Tō Dōnyū Keikaku) may be eligible for special tax measures on fixed assets, provided they meet certain requirements.

In order to promote regional economic revitalization, Niseko Town offers a Fixed Asset Tax exemption based on the Special Measures Act for the Promotion of Sustainable Development in Depopulated Areas. If a business acquires qualifying buildings, depreciable assets, or land (used as the site for such buildings) as special depreciation assets between April 1, 2021 and March 31, 2024, and the total acquisition cost meets the required threshold according to the type of business and capital size shown in the table below, the acquired assets are exempt from Fixed Asset Tax for up to three years from the first taxable year.
To apply, the business must submit the required application to Niseko Town no later than March 15 of the year in which the tax exemption will apply.

*What are special depreciable assets? For individuals: assets subject to Item 1 of the table under Article 12, Paragraph 3 of the Special Taxation Measures Act (assets for which special depreciation is claimed in the income tax return). For corporations: assets subject to Item 1 of the table under Article 45, Paragraph 2 of the Special Taxation Measures Act (assets for which special depreciation is claimed in the corporate tax return).

For details, please see the following page:

You can view cadastral maps, including survey results, diagrams, and aerial photographs, to confirm the location and current status of land. Copies of these maps are also available for a fee.
In addition, a Niseko Town area map (1:50,000 scale) is available for purchase at 500 yen per copy.

For details, please see the following page: