Study on the Design of Furusato Nozei (Hometown Tax) Program from the Perspective of Ethical Consumption and Donor-Community Relationships

Abstract

This study examines the effects of Furusato Nozei (Hometown Tax) on ethical consumption and relationship population (donor-community relationships). A web-based questionnaire survey was administered to 1,550 residents across the 23 wards of Tokyo to inquire about the implementation of Furusato Nozei, the purpose of the donation, and their relationship with the community after the donation. The main finding was that respondents who were aware of ethical consumption continued to have a relationship with the local communities to which they donated, even after receiving return gifts such as travel or event participation. In contrast, those primarily motivated by tax savings and the receipt of return gifts reported high initial satisfaction, which later declined due to the lack of sustained engagement with local municipalities. Respondents who intended to contribute to their hometowns, sympathy, and social contribution were more satisfied after donating tax returns to their hometowns than immediately after receiving them. The results suggest that it may be more effective for local communities to focus on building relationships after the donation, rather than on increasing satisfaction through returned donations.