Rating and Taxation Flashcards
What is not rateable land?
Crown land
Land used for charitable purposes
Land used for religious purposes
Land used exclusively for mining purposes
Land used for RSL or Airforce
What is the site value?
Vacant market value of land unencumbered by any lease, mortgage or charge
What is the capital improved value?
Market value of the property unencumbered by any lease, mortgage or charge
What is the estimated annual value?
The gross rental which the land would be expected to be leased for from year to year, less tenant rates, taxed and expenses
What is the net annual value?
Whichever is greater of 5% of CIV or the EAV
What is the date that the rating valuations are done?
They are as at 1st January each year
How are non-conforming uses asses when it comes to rating and taxation vals? Eg. industrial factory in residential zone
The site value will be assessed as residential land
What is a supplementary valuation?
It is an updated valuation of a property for rating purposes whos valuation was previously set at the relevant date.
What are the reasons for supplementary valuations
Whenever something is triggered, a supplementary valuation will take place (change in zonings, building permits):
- Land that should be included is not (subdivision, consolidation)
- Valuation is altered by the approval of a planning scheme
- Value altered through physical changes to improvements
What are the grounds for objection?
Value is too low or too high
Apportionment of interest or valuation is incorrect
Lands that should have been included together have been done seperate
Lands that should been seperate have been done together
Wrong person named on the notice
Area, dimensions, or description is incorrect
Objection process
Objector to lodge objection within 2 months
Authority valuer has 4 months to either agree or disagree and recommend to VG
The VG within 2 months shall serve notice as to whether they agree or disagree
If VG disagrees, objector has 1 month to say they want to take it to VCAT
What are the recent 4 legislative changes regarding tax?
Land Tax threshold lowered
Commercial stamp duty moving to a yearly tax
Windfall Gains Tax - Uplift from rezoning
Vacant Land Tax - has been around but now more widespread
Soon to come - tax on development sites unoccupied for a few years
What was the Ararat Windfarm Case?
Chattels vs Fixtures - ruled that regardless who owns the improvements, if it is fixed to ground it will counted in CIV
How would you determine the site value of a heritage property?
Look at HBU first - what are the restrictions
Where possible find comparable properties
What is the GPO case ?
Determined that SV was $1 of a heritage property because the land could only be used for the heritage restriction, after deducting cost to construct from the CIV it was left with a $1 SV (or nominal amount)
