Land Tax??!?

[Angel]

What if you own 3 townhouse IPs in a gated complex? How do they calculate the value of the land on each to determine if I am responsible for land tax?

Each year I get a valuation notice for all of the houses but we have never received one for the townhouse. I assumed it mustn't count, that the BC must be responsible for it. The rates notice (Moreton Region) for the townhouse shows the amount of land that we occupy.

I figure the Land Tax people will work out if we ever owe them any money and will send an account then.

 

[Paul@PFI]

Each year I get a valuation notice for all of the houses but we have never received one for the townhouse. I assumed it mustn't count, that the BC must be responsible for it. The rates notice (Moreton Region) for the townhouse shows the amount of land that we occupy.

I figure the Land Tax people will work out if we ever owe them any money and will send an account then.

WRONG. If you aren't registered you wont be assessed. More likely to be picked up at some point and then they backdate, add penalties add interest. Its also detected if you sell. Or you may be weel under threshold and they will nag you incessantly. A land tax clearance certificate is needed for a sale - Its designed to identify avoidance and then they clawback the debt just when you are selling. And note just one year

A valuation ntce is related to but completely separate from land tax. Issued by different agencies. Also the value on notice isn't always the one used for land tax. ie in NSW they smooth three years.

TIP - All investors should always voluntarily register for land and ignore taxable value. That way you cant forget.

 

[wylie]

And note just one year

Should that read "not" just one year? I'm guessing so, or people would take advantage of that as a loophole.

How far back would they go? I don't recall ever telling OSR about our IPs but we pay land tax on them, so somehow they know. Unless it is in the forms our solicitor has us sign at purchase. I need to pay more attention

 

[speary]

It will get picked up by the state revenue office off your tax return. In my case, PPOR changed to IP in late June, and sure enough in October I got my land tax notice, without having to contact Revenue SA.

 

[Perp]

Should that read "not" just one year?

I'm pretty sure that's what Paul meant, yes. I'm not sure how far they can go back, but it'd be enough that it could really hurt. If I were Angel, I'd be contacting them ASAP.

 

[Terry_w]

It will get picked up by the state revenue office off your tax return. In my case, PPOR changed to IP in late June, and sure enough in October I got my land tax notice, without having to contact Revenue SA.

Not always though. I have done conveyancing matters where the vendor has suddenly discovered they owe 5 years worth of land tax which they hadn't planned for.

There are also legislative requirements to register.

 

[JDM]

This issue is not uncommon in Queensland as people often fail to apply for the PPOR exemption. The relevant form for an individual owner in Queensland is the LT Form 12 (https://www.osr.qld.gov.au/forms/land-tax-forms/exemp-deduction-forms/form-lt12.pdf).

Once this exemption is granted, OSR will reassess the land tax liability and in this case, based on the facts provided, there will be no land tax liability.

 

[Paul@PFI]

JDM raises a very good point. Most land tax jurisdictions have strange exemptions you MUST apply for. If you don't register you cant get them. A god example often is a trust.

eg : NSW fixed trusts, Victorian trusts which are also a PPOR etc....

 

[Angel]

Last time we bought a property I sent in the PPOR exemption form and I have never even received an acknowledgement that they received it. We are way below the threshold.

 

[NedKelly]

Should that read "not" just one year? I'm guessing so, or people would take advantage of that as a loophole.

How far back would they go? I don't recall ever telling OSR about our IPs but we pay land tax on them, so somehow they know. Unless it is in the forms our solicitor has us sign at purchase. I need to pay more attention

How far back would they go? - There was a guy on here recently that got a large land tax bill ($60K if I remember correctly). They went back 6 years!

 

[Terry_w]

How far back would they go? - There was a guy on here recently that got a large land tax bill ($60K if I remember correctly). They went back 6 years!

I think it is just 4 years unless there is fraud or evasion.

 

[NedKelly]

This is the thread I spoke about earlier.

http://somersoft.com/forums/showthread.php?t=99118