In Kyoto, The urban areas rapidly stretched out of the city limits after the end of the Meiji era. This paper reveals the immediate cause, that is, the fact that many lower-class wageworkers moved out of town because of the imbalance in tax payment in and out of Kyoto City. The outline of this paper is as follows : 1) extension of the urban areas beyond the limits of Kyoto City, 2) imbalance in tax payment between in and out of Kyoto City, 3) 'Kosuu-wari' and 'Kaoku-zei' leading to the imbalance in tax payment, 4) implementation of 'Kaoku-zei' in the surrounding towns and villages, 5) rapid urbanization in the surrounding towns and villages, and 6) management of rented house owners in the surrounding towns and villages.