Confusion about property tax

[RMA]

I recently finalized a secondhand apartment and feel like the property tax is very high on the building portion. I got some papers from the real estate agent and it is showing the assessed value of my apartment as around JPY 8.7 mil and the tax of JPY 147.9k. It appears very high to me considering the building is very old (built in 1989). The exclusive floor area of my unit is 96.5 sq.m. and the balcony is 15 sq.m. and they are calculating the assessed value on the total floor area of 111.5 sq.m. including balcony. The assessed value of the land portion and it's corresponding property tax looks fine to me.

Now I would like to hear from you experienced home owners about following:

1. What do you guys think about the assessed value of this old apartment? Is it considered high or normal?

2. Do they consider the balcony area also in the calculation of assessed value of apartment or just the exclusive floor area?

3. Can city office make mistake in the assessed value or can they be challenged?

I will speak about it to the real estate agent also but don't want to make fool out of myself hence asking here first.

[Tkydon]

Are you referring to the Annual Fixed Asset Tax - Kotei Shisan Zei?

1. The assessed value is lower than the real value

3. JPY 147.9k / 4 = Y36,975 Per quarter or Y12,325 Per month. That's very low.

[RMA]

Are you referring to the Annual Fixed Asset Tax - Kotei Shisan Zei?

1. The assessed value is lower than the real value

3. JPY 147.9k / 4 = Y36,975 Per quarter or Y12,325 Per month. That's very low.

Yes I am referring to Kotei shisan zei.

I understand that the assessed value is lower than the real value but according to me it seems still higher in my case. I have checked with some of my homeowner friends and they are paying much less property taxes even though mine apartment is much older than theirs.

There are two segements of residential home property tax - property tax on land and property tax on structure. I am not confused about property tax on land but have concerns about the property tax on structure.

Before checking with my real estate agent or city office, I just wanted to know about following so that I am prepared:

1. Do they consider the balcony area also in the calculation of assessed value of apartment or just the exclusive floor area?

2. Can city office make mistake in the assessed value / can they be challenged?

[Tkydon]

My kotei shisan zei for similar sized appt with roof balcony is 19% higher than yours.

see Page 37 of this doc

https://www.tax.metro.tokyo.lg.jp/book/ ... k2022e.pdf

see Page 44 of this doc

https://www.city.nagoya.jp/zaisei/cmsfi ... es2021.pdf

For depreciable assets, the standard taxable value is the total of the value of each declared asset calculated based on their respective
acquisition value, acquisition year and month, and estimated useful life.

The Useful life of a Steel Reinforced Concrete structure is 47 years. so depreciation is 1/47th of the purchase price of the structure per year.

[Beaglehound]

So with a 47 year depreciation cycle, the OP’s apartment will still have around a third of its original assessed valuation intact. I initially thought it strange that there was any assessed value left on it, but was forgetting that the cycle is longer for concrete structures than wooden.

Balcony was included in the assessment for our house so I assume it would also be included for apartments.

My feeling is that the assessed value will be pretty much ‘set in stone’ from when the block was built and that any challenge would be an uphill struggle.

[RMA]

My kotei shisan zei for similar sized appt with roof balcony is 19% higher than yours.

I hope we are comparing only the kotei shisan zei on appt portion here because I would be paying kotei shisan zei on land portion for JPY 28,500 on top of that. Also my appt should be much older than yours.

I am getting conflicting opinions on this matter - most are saying it seems high in my case but everyone is suggesting that the assessed value is calculated by the government officials based on their own set of rules so nothing can be done here. Anyway I will just make a trip to the city office and clear up my confusion with them. Thank you for responding!

[Tkydon]

My kotei shisan zei for similar sized appt with roof balcony is 19% higher than yours.

I hope we are comparing only the kotei shisan zei on appt portion here because I would be paying kotei shisan zei on land portion for JPY 28,500 on top of that. Also my appt should be much older than yours.

I am getting conflicting opinions on this matter - most are saying it seems high in my case but everyone is suggesting that the assessed value is calculated by the government officials based on their own set of rules so nothing can be done here. Anyway I will just make a trip to the city office and clear up my confusion with them. Thank you for responding!

My manshon kotei shisan zei includes my portion of the land alocated in proportion to my share of the total floorspace of the development and my Unit. Y176,000 per year all in.

If you read the docs I sent you, it says that you can go to the Ku-Shi-Son-Cho Yakusho and inspect the Fixed Asset Tax Ledger to understand the Assessment that would have last been updated and revalued in 2021.
Land is not Depreciable and so is valued as described in the Land Section.
The Structure is Depreciable and so is valued as described in the Building Section, according to the 1/47th per year depreciation of the Structure portion of the value (for a Steel Reinforced Concrete Structure - Different useful life for other construction materials), based on the age of the building and the original price.