Jun 19, 2010

Benefit Principle Charge

Most municipalities take benefit principle charge system.
Beneficiaries, mostly landowners, have to pay their due after sewer service becomes available.
This is based on the idea that availability of sewer service increases the value of land and part of the increased value should be returned to the public.

The benefit charge system is authorized in the national law for urban planning.
The details of charge system are decided by municipal law.

The charge amount depends on the size of land.
In case of Saitama City, the latest unit charge is 810 yen/m2.
It is calculated based on the sewer installation cost.
The process of charge is as follows.
1 Public notice for commencement of sewer service on quarterly basis
2 Public notice for benefit principle charge for the land where sewer service has become available in the previous fiscal year in early April
3 Send letters to land owners for confirmation on payment in early April
4 Send bills in early June
5 Payment by land owners in quarterly installments for 5 years, which is 20 times in total

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