Lessees of land owned by a local or county council or a public authority
29 January 1991|
for Chief Commissioner
2 January 1991|
- In 1988 amendments were made to the Land Tax Management Act 1956 to make lessees of land owned by a local or county council, or a public authority liable to land tax. ("Public Authority" is defined in section 3(1) of the Act). The commencement of liability was delayed until the 1991 land tax year to allow time for those affected to be advised of the changes. In 1989, a further amendment was made to exempt leases entered into or renewed prior to 1 January 1989. The exemption is for the life of the lease, or until the terms of the lease relating to rental payable are renegotiated.
- The Treasurer has now agreed to delay the commencement of liability. The reason for delaying commencement is that it appears that many councils and authorities, as well as lessees may not be aware of the land tax liability of lessees.
- The purpose of this Ruling is to advise details of the delay in commencement of lessees' liability, approved by the Treasurer.
- The Treasurer has approved of an amendment to the Land Tax Management Act to exempt lessees of land owned by local and county councils and public authorities, where the lease was entered into or renewed prior to 1 January 1991. This means that liability for land tax will only commence from the 1992 land tax year, and then only in respect of leases entered into or renewed on or after 1 January 1991.
- The Act will be administered on this basis pending an appropriate amendment to give effect to the delay in commencement of liability.
Lessees who would have been required by the current provisions to pay tax in respect of a lease for the 1991 tax year are therefore relieved of that obligation.