Apportionment of adjusted values of land on a rental value basis
20 May 1992|
for Chief Commissioner of Land Tax
1 January 1992|
- Sections 10(2), 10(2A) and 21C of the Land Tax Management Act 1956 contain provisions requiring the determination of the rental value of land and buildings, for the purpose of determining the taxable proportion of adjusted value of land which is partially exempt and partially taxable.
- The exemption provisions to which Section 10(2) relate are:
- Section 10(1)(f) - land owned by industrial associations;
- Section 10(1)(g)(iii) - land owned by non profit associations;
- Section 10B(2), Section 10C(1)(a), and Section 10D(2) land owned by certain government trading entities.
- Section 10(2A) relates solely to the exemption provisions of Section 10(1)(f) and Section 10(1)(g)(iii).
- Section 21C imposes land tax on non-exempt lessees of land owned by the Crown, a local council, a county council or a public authority.
- The purpose of this ruling is to advise taxpayers on the determination of rental values for the purposes of these provisions.
- When lodging a land tax return in respect of land requiring rental values to be determined in accordance with sections 10(2), 10(2A) and 21C, taxpayers should submit estimates of both the rental value of the taxable proportion of the land or the building as appropriate, and the rental value of the whole of the land or building as appropriate. The basis on which these estimates were made should be disclosed.
- The valuation basis might include one or more of the following:
- a valuation by a licensed valuer under the Real Estate Valuers Registration Act 1975;
- a valuation by the NSW Valuer-General;
- a written estimate by a licensed real estate agent;
- the rental derived from parts of the relevant land or building;
- the rental value of comparable land or buildings within the same locality.
- A valuation by a licensed valuer or the Valuer-General is not required when lodging a return. However, where the rental values are not considered to be fair and reasonable, the taxpayer may be asked to furnish further evidence to justify those rental values, including a request for a valuation by a qualified valuer or the Valuer-General.
- From 2007, deduct the reduction for the current year from the average land value