The city assembly of Neyagawa in Osaka Prefecture passed an ordinance Thursday to impose a tax on owners of vacant houses across the entire city starting in fiscal 2029.
The municipal government said the vacant house distribution promotion tax will be Japan's first such levy not limited to a specific area. It will apply to owners of some 6,400 vacant homes and equal 35 percent of the property tax.
After the assembly enacted the ordinance, Mayor Keisuke Hirose told reporters, "Securing housing is an issue in commuter towns near major cities." He added that the new tax has significance not only for Neyagawa but also for the whole country.
The levy is expected to generate about 140 million yen annually. Part of the revenue will subsidize the demolition of vacant houses. Kyoto is also launching a similar tax on such homes in the city's urbanized areas starting in fiscal 2030.