Review of raising the fair market value ratio for comprehensive real estate tax to 70%

The government is reviewing a plan to raise the fair market value ratio from the current 60% to 70% in order to increase the comprehensive real estate tax burden on multihome owners and nonresident singlehome owners. This measure is said to be likely included in a revision to the tax law. The fair market value ratio is the proportion of the amount remaining after subtracting the basic deduction from the officially assessed property price that is reflected in the actual tax base. If this ratio rises, the tax base increases even if the tax rate stays the same, leading to a higher comprehensive real estate tax burden. The government is also reviewing a plan to lower the basic deduction amounts for nonresident singlehome owners and multihome owners. On the other hand, it is pushing to raise the deduction for owneroccupied singlehome owners, making actual residence the key criterion for comprehensive real estate tax assessment.