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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42629
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I have a land tax bill of $9,000 which i have contested.

Customer Question

i have a land tax bill of $9,000 which i have contested.
There assessment was based on the fact that i owned 6 blocks at the time of assessment
i had signed contracts on three of them 2 of which were paid for in advance (people i owed money too) all three contract had some conditions attached.
all three were given complete use of the land as at signing of contract.
all purchasers did actively make use of this condition.
All settled after the end of the financial year
I was advised by the land tax people last year that i had to (as vendor) write on the contract that permission to use the land was granted.
one of the clients built a home and was living in it before it settled
They have dismissed my adjustment claim because all 3 contracts still had a condition connected to it as at the end of June.
What is the correct understanding, what rights do i have and what can i do about it
XXX XXXXXXXXXXX
XXXXXXX XXXX XXXX- XX XXXXX XXXXX
I think this is unfair because i did as i was told to do
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Morning
My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.
Did you own the land and was it all registered in your name for the land tax period?
In the contracts that you had signed, was there a clause that the purchaser would pay their share of the land tax upon settlement?
Do you have anything in writing from the Land Tax Office that you would not be charged land tax if you authorised a 3rd party to use the land?
Customer: replied 1 year ago.
1 the land was all in the same company name
2 there was no clause about land tax (i was only advised to have it noted the were able to used land at signing)
3 no it was over the phone ( i am going to put in a FOI requesting information, when i spoke to the person i recorded date and his first name)
Expert:  Leon replied 1 year ago.
Good Afternoon
I am sorry to hear that it is not in writing
The registered owner is liable for the land tax and if you sell during the period you can have a clause that the purchaser will pay their share.
If this is not in the contract the original owner is liable to pay all the land tax when it falls due.
If the new purchaser has taken possession of the property prior to settlement and you can show that they have started to build on it and there is some form of vendors finance then you can argue trey are liable.
But this all has to take place prior to the 30 June when they assess land tax. If not and you are still the owner in possession at the time of assessment you are liable.
Here is the information followed by the link
Buying and selling land
Generally, when you enter into a contract for the sale of land, the seller is the owner of the land until settlement.
Since land tax applies to the land you own on 30 June, it will not matter if you do not own the land for the full financial year. This means that we will not divide the liability between a buyer and seller.
However, if the buyer takes possession before settlement, they will be the owner of the land for land tax purposes. This may happen under a vendor finance arrangement, or to allow the buyer to start building.
Apply for a clearance certificate to make sure you are not charged land tax on land you are buying.
Find out more about when buying or selling land affects your land tax.
https://www.osr.qld.gov.au/land-tax/about-land-tax/index.shtml
It is at the link Assessing Land Tax
I hope this makes sense and is of assistance. If there is nothing further thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Customer: replied 1 year ago.
1 Ruling LTA011.1.1 the sale are consistent with example 1 (meaning no tax payable) and could also be argued it was covered under example 2 which means land tax is payable and i feel example 3 is not relevant
2 first property was conditional upon the purchaser entering into a building contract(the vendor to build home) and subject to bank finance (this was never in doubt.) The purchaser had full procession of land to apply for building permits and prepare the land for the above work. the property did settle
3 the second block was conditional upon the purchaser entering into a building contract to build a new home and finance for the new home (not the land). there was a debt owed to the purchaser by the vendor to the value of the land. approvals were give and the transfer no money changed hands at settlement
4 the third block again there was a debt owed to the purchaser by the vendor no money changed hands at settlement. it was conditional upon the settlement of the purchasers home which was under contract
5 The year before i was told by the land tax people that all i had to do was put the fact that they had possession of the land if they failed to tell me the other extract conditions does that give me a chance to an appealone property the contract was signed two years ago, permission was grant for them to start the building process. they started building, finished and moved in the home
Expert:  Leon replied 1 year ago.
Good Afternoon
In that case you are exempt.
Is this your own ruling or another?
Customer: replied 1 year ago.
Can i send you there ruling?
and you have a look to see if my understanding and reading is correct
Expert:  Leon replied 1 year ago.
Good Afternoon
You can email them to***@******.***
I can then read them and get back to you
Will take up to 24 hours as everything is checked through the US
Customer: replied 1 year ago.
land tax ruling p 5, land tax ruling p 6, land tax ruling p 7, land tax ruling p 1, land tax ruling p 2, land tax ruling p 3, land tax ruling p 4
Expert:  Leon replied 1 year ago.
Good Morning
Can you email me the links?
Customer: replied 1 year ago.
Hi Leon
if you go to the web
print the ruling number
LTA011.1.1
it will come up and there is some cases there for readingKen
Expert:  Leon replied 1 year ago.
Good Morning
I will look at it during the day and get back to you