NTA says no to revising rosenka land tax values

Bad news for some as the National Tax Agency (NTA) has decided not to re-adjust rosenka land tax values in light of the pandemic. It seems that land values have not fallen enough to trigger any revision.

Back in June it was reported that the NTA was readying measures that would see them adjust rosenka land values downwards in the event that land values were to fall significantly this year. 

The NTA conducted a survey of 1,900 sites nationwide, of which 6 locations saw land values fall by over 15% in the first half of 2020. One of those locations was in Tokyo’s Asakusa district. Nagoya City’s Nishiki 3 Chome area and Osaka’s Soemoncho district near Dotonbori both saw land values drop 19% between January and June. Tourist-centers have been hit the hardest by the pandemic and travel bans.  

Still, these declines were not considered excessive enough to warrant a revision to the rosenka land values. An additional survey will be carried out to identify price movements that occur in the second half of 2020.

Rosenka land values are used for the purpose of calculating inheritance and gift tax on real estate. The valuations are carried out by the NTA on January 1 each year, with the results announced in the following July. Any changes in the real estate market that occur throughout the year would not be reflected until the following year’s valuations. In the worse-case scenario, a large divide between actual market prices and inheritance or gift tax values could result in an unreasonably high burden on heirs or recipients. Taxpayers can elect to hire an appraiser for a revised valuation.

Source: The Nikkei Shimbun, October 28, 2020.

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