Questionable Land Tax Assessment

[Jester]

Hi Folks, I have 2 units the in the same block and recently got my 2005 Land Tax Assessment from my best friend Bob Carr. What I could not understand is that even though the units are on the same floor and almost identical in dimensions, (Might be a variance of about 3 Sq. Mtre's) the land tax valuations differ by about $9000. - (ie) One Land Valuation comes in at about $114,000 and the other at about $125,000. How can this be? It is worth noting that although they both have double garages, on one unit they are tandem and on the other thety are side by side with a dividing wall but I do not see that this would be the cause of the variation. Have the OSR got it wrong?. Sometimes I think they just spin a wheel like on the wheel of fortune and see what comes up. Aside from calling or writing to them, what is my next port of call? Should I go to council? What would you guys do? I just get the feeling I am getting ripped off and quite frankly I am sick and tired of paying land Tax and sick and tired of Bob Carr. I wonder why I bother investing anymore when all I do is get penalised for trying to get ahead and "NOT" rely on government handouts. Mybe I should sell up and go on welfare!!

Jester

 

[buzzlightyear]

Worst case....

Playing the devils advocate, the higher land tax assessment may be correct and you might be underpaying on one unit!!

 

[see_change]

A side by side double garage would be worth more than a tandem garage.

See Change

 

[coastymike]

Land Tax is assessed on the unimproved value of the land. (i.e. no property on it) So although a tandem garage might improve the market value of the overall property it will have no impact on the unimproved value of the land. However, land improvements as defined in section 4 of the Act remain part of the land value, for example clearing, draining and filling of land.

You do have a right to object to the valuation and this can be done by firstly contacting the Department of Lands on 1800 110 038 to determine how the valuation was arrived. It may be that one part of the land is slighty larger in size (the Department of Lands will be able to tell you the size of the assessed land component) and this could account for the difference in valuations.

Landowners and lessees lodging an objection must use the Valuation Objection Form which is available online or at Lands offices and from some local councils. Your objection will not be accepted unless it is on this form.

I would firstly look at the assessment and ensure that the land areas are the EXACT same size and the description of the land is EXACTLY the same. Even a small difference in the parcel size of the lands will increase the assessment.

Just remember land tax is assessed on the unimproved value of the land (i.e. no property on it) so looking at recent market sales is meaningless. The fact that one has a garage and another does not has no impact on land valuations.

Hope this helps.