The COVID-19 pandemic has impacted all industries across the globe.
While corporations and industry giants struggle to implement measures that would limit their losses and the damage to their bottom line, the government is experiencing a sharp decline in tax revenues on the state and local landscape.
The disruption of major economic and commercial operations including real estate raises a lot of uncertainties about the state of property taxes.
As a property owner, it is understandable that you would wonder about the chances of an economic recovery and whether or not reductions in property tax assessments remain a possibility amid the pandemic.
We will walk you through the impact of COVID-19 on property tax valuations and what sort of incentives Japan is providing its manufacturers and commercial property owners.
Here is what we know
The pandemic has resulted in colossal budget deficits, and to make up for this loss, federal, state, and local governments face immense pressure to source for revenue from all available streams.
With an increase in layoffs and the rising rate of unemployment, personal and corporate income taxes will prove insufficient, leaving property taxes to bear the brunt.
Property taxes present a more stable revenue source and thus, an increase in rates should be expected.
It is also impossible to say whether or not jurisdictions will permit appeals or grant reductions within the current valuation cycle. The good news is, having a professional property tax expert will prove beneficial in clearing up most of the uncertainties at this time.
You also stand to enjoy expert advice on how best to prepare an ironclad presentation during your next valuation case.
What incentives has the Japanese government provided for property owners?
Landowners, property owners in Japan are required to pay fixed asset property tax based on the assessed value of their land or building, as it is in most jurisdictions. The tax is levied on the first day of each year while bills are sent out between April to June.
The government of Japan, in response to the pandemic, has instituted an extension of tax return filing dates and payment due dates for taxpayers.
For Japanese manufacturers who have suffered a significant decrease in revenue due to setbacks caused by COVID, the one-year grace period is a major cost-saving opportunity that will enable them to recoup losses to a reasonable extent.
Other incentives provided by the Japanese government include stamp tax exemptions, flexible application requirements, tax reductions, etc. However, each of these is subject to specific situations and circumstances.
How Japanese manufacturers can save costs on property tax in the US
As a Japanese national in the United States, you can also enjoy economic incentives that translate into potential savings for your manufacturing company.
The property tax system in America, though not necessarily complicated, can prove a challenge to property owners who lack full knowledge of proper processes.
It is, therefore, essential that Japanese manufacturers partner with property tax advisors who can help them handle the appeals process as well as their other tax management needs.
