Since October, a number of local governments have increased the amount of donations for hometown tax payments and abolished some thank-you items.

This is due to the Ministry of Internal Affairs and Communications tightening the standards to prevent excessive competition for return goods, and there is a growing movement to make last-minute donations.

Why is the price increase scheduled from October?

On the hometown tax intermediary site, there are now a number of local governments that state that the amount of donations is scheduled to increase from October.

This is a response to the Ministry of Internal Affairs and Communications tightening the standards from next month so that the total amount of expenses such as procurement costs and shipping costs for return goods will be 5% or less of the donation amount in order to prevent excessive competition for return goods.

In June, the Ministry of Internal Affairs and Communications notified local governments to include the cost of sending donation receipts and fees to intermediary sites.

In response to this, Mogami Town in Yamagata Prefecture has decided to raise the donation amount of about 350 of the approximately 300 thank-you items such as rice, cherries, and potato stew sets from next month.

The person in charge
of Mogami Town, Yamagata Prefecture: "It is difficult to predict how much the 'price increase' will affect the amount of donations.

In addition, Kitsuki City, Oita Prefecture, has also begun to raise the amount of donations of citrus fruits and other thank-you goods on its website, such as "the price will be raised from October."

A person in charge
of Kitsuki City, Oita Prefecture, said, "There are some things that cannot be changed now, such as advertising costs, and there was work that was not usual, but since the changes are made under the same conditions nationwide, we have no choice but to respond according to the system.

The movement of donations in the "last minute" ...

Ahead of the increase in the amount of donations from October, there is a growing movement to make donations on a last-minute basis.

According to the operating company of the hometown tax intermediary site "Furusato Choice," the amount of donations increases sharply towards the end of the year every year, but the amount of donations from July to the middle of this month has increased by about 10.7 times compared to the same period last year.

Popular scallops in Monbetsu City are also ...

Monbetsu City, Hokkaido, which ranked second in Japan in terms of the amount of donations for hometown tax payments last fiscal year, plans to raise the donation amount by about 2% of the approximately 10 items from October, including scallops and salmon roe.

On the other hand, last month the amount of donations increased by nearly double that of the same period last year.

According to the city, in addition to the "last-minute" donation movement ahead of the tightening of standards from October, there is also a movement of support for China's suspension of imports of marine products in response to the problem of treated water.

The person in charge
of Monbetsu City, Hokkaido: "I am glad that people who did not know Monbetsu City have a feeling of support through the hometown tax payment, and I would like to continue to work to respond to that feeling."

Not accepted as a gift in return... Izumisano City has a growing sense of crisis

On the other hand, in addition to the standard for necessary expenses, the standards for return goods will also be revised from October, and "aged meat" and "polished rice" will no longer be recognized as return goods unless the raw materials are produced in the same prefecture.

This change is causing a growing sense of crisis in Izumisano City, Osaka.

Izumisano City

Of the total donations of 137.7200 billion yen in Izumisano City last fiscal year, 28.4 billion yen was for aged meat and 5000 million yen for polished rice, accounting for 24% of the total, but if this trend continues, we will be forced to abolish return goods.

In order to create a new local product to be given as a gift in return, the city recruited companies and a facility for making "aged meat" had just been completed.

Of these, it is said that the "aging warehouse" alone costs tens of millions of yen in capital investment.

March 2021 Completed facility for making aged meat

According to Izumisano City, if the standards are changed from October, the four businesses that handle "aged meat" and "polished rice" as gifts in return for the city will lose about 10 billion yen in sales based on the amount donated last fiscal year, making it difficult to reduce the size of their offices and maintain employment.

Ken Shiomi, Director in charge of hometown tax payment, Izumisano City, Osaka
: "Even if primary products are not abundant, we have been promoting initiatives to 'make them if they don't exist,' and the reality is that even though they were approved until now, they are suddenly 'Okay if you put them out.'

Determine the maximum amount before making a "last-minute" donation

In principle, the entire amount of the donation amount exceeding 2000,2000 yen is deducted from income tax and resident tax, but there is an upper limit to the amount.

Usually, the largest number of donations are received in December, when the annual income is fixed and the maximum amount of donation that can be donated at 12,10 yen is confirmed.

Donations have been increasing since October due to stricter standards, but when making "last-minute" donations, it seems necessary to determine the maximum amount of each.

The person in charge of the hometown tax intermediary site says, "There is also a simulation function for the maximum amount of deduction, so I hope you will make good use of it."

The hometown tax payment system provides an opportunity for taxpayers to choose where to donate and think about how taxes are used.

Of course, gifts are attractive, but where do you want to support?