The Basics of Land Tax

For property or business owners, land tax is one of the common taxes you have to pay. It is computed based on the total taxable value of all the land that you own. You’ll have to pay for land tax if you own residential rental property, commercial property, vacant land or a holiday home. However, you don’t have to pay for land tax where you permanently reside. Read along to know more about the basics of land tax and how to manage it properly.

Owning a Land

Owning a land means that you have a title, lease, license, or anything that proves your hold on it. It can be owned individually but can also be owned by a group, company or trustees. Tax obligations are given to all the owners of the land, especially if it is owned by more than one person. However, if you have a co-owner of the land, a different way will be used to assess your land tax.

Exempt Land

Not all kinds of land are charged with land tax. There are several types of properties called exempt land which are not included in computing land tax NSW. You don’t have to pay for land tax on your principal place of residence or your home. Your farm, charitable institution and rooming house are also exempted from land tax. However, if you’ve moved your residence or rented out your old home, you should notify the authority as soon as possible to update your tax assessment.

Tax Assessment

Tax assessment is given to a person who owns a land. For solo land owners, you’ll only receive one assessment. However, if you receive more than one, contact the authority immediately to correct the record of the land you own. For joint ownership or trustee, you may receive more than one assessment, for each individual whom you own the land with.

Payment of Land Tax

After receiving your land tax assessment, it should be paid on or before the due date. Land taxes should be paid in full since partial payments will not be received. If a landowner fails to pay the amount on the due date, a notice will be sent to him with an additional penalty tax and interest on the total amount due. However, if the landowner still fails to settle the debt after receiving a notice, legal actions will be performed by the authorities to recover the debt.

Site Valuation

Each property or land differs in the amount of tax because of their value. The value of a certain site is affected my many factors such as vegetation, draining, removal of rocks, retaining walls, and any other type of improvement. However, this does not include structural improvements such as buildings constructed over the land.

Land tax is one of the things you need to maintain when you own properties or lands. Everything you pay is worth it since all the revenue gathered from land taxes are used for public services such as safety, health and education.

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