"Nochi Navi" Releases "Fixed Asset Tax vs. Post-Conversion Tax" Comparison Tool for Farmland ── AI Estimates 10-Year Tax Difference Between Holding Farmland As Is and Converting It

Mycat Co., Ltd. has launched a tool that allows comparison of fixed asset tax on farmland and tax after conversion over a 10-year period, within its farmland information search service "Nochi Navi" (https://nouchi.xyz). Tool URL: https://nouchi.xyz/tools/tax-compare

Heirs Continuously Face "Unexpected Tax Burden" with Farmland Conversion

When inheriting farmland, if it is held as farmland, the fixed asset tax for farmland applies, and the annual tax burden is kept relatively low. However, if conversion to residential land or use as a parking lot begins, the appraisal value significantly increases, and fixed asset tax can swell several to dozens of times. According to the Ministry of Internal Affairs and Communications' "Summary Report on the Prices of Fixed Assets," the average appraisal value per square meter for general farmland nationwide is around 80 yen, while residential land reaches tens of thousands of yen (Source: Ministry of Internal Affairs and Communications "Summary Report on the Prices of Fixed Assets"). It is not uncommon for appraisal values to differ by hundreds of times in simple calculations, and frequent reports are made of people regretting after conversion, saying, "I didn't expect the taxes to be this high." The problem is particularly serious for farmland within urbanization promotion areas. Farmland within urbanization promotion areas can be subject to "residential land-level taxation," so the tax amount changes immediately upon filing a conversion notification. The same applies to the cancellation of designation as productive green spaces; after cancellation, it switches to residential land appraisal, and the annual fixed asset tax sharply increases.

Problems the Tool Solves

The first dilemma for those who inherit farmland is the decision of "whether to continue holding it as is or to convert it." However, accurately grasping the tax amount after conversion requires considering multiple factors such as changes in appraisal value, the presence or absence of reduction measures, and the classification of urban planning areas. This tool simulates the tax amount for 10 years, both for holding the land as farmland and for converting it, simply by inputting the following information.

Input Items

• Location of the farmland (prefecture, city/ward/town/village)
• Area (square meters)
• Current farmland classification (general farmland / farmland within urbanization promotion areas / productive green space)
• Post-conversion use (residential land / parking lot / solar power generation / other)
• Current fixed asset tax amount (if known)

Output Content

• Cumulative tax amount for 10 years if held as farmland
• Cumulative tax amount for 10 years if converted
• Graph display of the 10-year tax difference
• Presence or absence of fixed asset tax reduction measures
• Impact of inheritance tax payment deferral system (warning regarding cancellation of deferral upon conversion, if applicable)

Also Supports Cases Where Inheritance Tax Payment Deferral Becomes a "Shackle"

A unique issue related to farmland inheritance is the inheritance tax payment deferral system. If farmland is inherited using this system, and the farmland is subsequently converted, the deferred inheritance tax plus interest tax must be paid in a lump sum. This tool includes whether the inheritance tax payment deferral is being utilized as an input item, and if it is, it displays the risk of deferral cancellation due to conversion on the screen. It is designed to provide comprehensive judgment materials, including not only the difference in fixed asset tax but also the additional burden of inheritance tax.

Useful in the Following Scenarios

Case 1: Those considering how to utilize inherited farmland
People who have inherited farmland from their parents but do not engage in agriculture can use this tool to check the changes in tax burden due to conversion in advance. Conversion to parking lots or solar power generation sites is often considered due to low initial costs, but not many people take into account the fluctuation in tax amounts.

Case 2: Landowners whose productive green space designation is approaching its expiration date
In 2022, many productive green spaces reached their 30-year designation limit (the "2022 problem"). When deciding whether to extend or cancel the designation, it is crucial to grasp the tax fluctuation after cancellation with concrete figures. By selecting productive green space and specifying the post-cancellation use in this tool, you can check the range of tax fluctuations.

Case 3: Those considering purchasing a house with attached farmland
The number of cases purchasing houses with attached farmland due to relocation to rural areas is increasing, but without understanding the tax burden mechanism of the farmland portion, there is a risk of misjudging the conversion costs when eventually letting go of the farmland. By simulating the tax amount before purchase, long-term maintenance costs can be understood.

Next Update Schedule

Nochi Navi plans to add a function to guide users on the necessary documents for farmland conversion permission applications and content explaining the flow of notification procedures to agricultural committees. We aim to be a service that allows decisions regarding farmland to be made based on data. * The simulation results of this tool are approximate; please confirm the exact tax amount with the tax department of your municipality. For farmland conversion procedures, please consult with experts such as administrative scriveners.

▼ Details of this matter
https://nouchi.xyz/tools/tax-compare

■ Company Profile

Company Name: Mycat Co., Ltd.
Established: February 5, 2025
Location: 2-7-22 Mita, Meguro-ku, Tokyo
Latest News: https://nouchi.xyz/news
Corporate Website: https://mycat.business
Inquiries: info@mycat.business

Compliance Check

• [x] Novelty: Release of Fixed Asset Tax vs. Post-Conversion Tax Comparison Tool → OK
• [x] Superlative expressions: None → OK
• [x] Data source: Ministry of Internal Affairs and Communications "Summary Report on the Prices of Fixed Assets" → OK
• [x] Representative name: Not disclosed → OK
• [x] Fictitious survey: None → OK
• [x] Prohibited words: None → OK
• [x] PDF/White paper main axis: None → OK