Land Tax WA versus HTW Valuation

Discussion in 'Accounting & Tax' started by Propin, 24th Nov, 2016.

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  1. Propin

    Propin Well-Known Member

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    I had a bank valuation for house and land in Perth18 months ago that came in around mid $700,000. I provided valuer with evidence of similar sales at the time. I just received land tax and it's come in just under $1,000,000 for assessment 30 June 16. Is it worth disputing?
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    To object to a valuation you need objective evidence that is current. I would go talk to a local valuer first...They know sales data. They can address the issue better than anyone.

    I cant speak for WA but many states do not physically value properties !! Instead they rely on valuers who identify exceptions and otherwise work on a standard rate for small areas. The valuations usually start with local valuers ! If your property gets missed as an exception then its possible a objection to the "norm" is needed.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    18 months is a long time.
     
  4. Propin

    Propin Well-Known Member

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    Yes, about 10-11 months between valuation and land tax assessment. Good point, will take a look if there is any recent sales I can compare.
     
  5. Propin

    Propin Well-Known Member

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    Thanks. That will be a good start. It's a bit of a unique sized property.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The land tax valuation date doesnt have to be same as the taxing date !! You need to understand what the valuation date was used for the land tax. Properties in a area are revalued with common val dates and you cant object using a different date. My understanding this makes rolling valuations possible across a whole state rather than forcing all vals to be done once every X years.
     
  7. Ross Forrester

    Ross Forrester Well-Known Member

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    The valuer general values the land around 1 August 2015 for a 30 June 2016 assessment so make sure your instructions to a valuer is correct (especially as Perth is falling).

    Also remember that you have 60 days to lodge an objection. And even if you lodge an objection you are still required to pay the assessment.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    From Perth 18 months ago to now, it could be worth 30% less - depending on the area of course.
     
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  9. Propin

    Propin Well-Known Member

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    IMG_1535.JPG In WA all land tax is assessed on 30th June and then then the assessment comes out a few months later and you have at least a couple of months to pay.

    I just realised I missed reading a page and their valuation is right.

    I didn't realise there is land Tax on the assessable value plus metropolitan regional improvement tax
     
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  10. Propin

    Propin Well-Known Member

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    IMG_1536.JPG Land tax rates + Metropolitan region improvement tax
     
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  11. Propin

    Propin Well-Known Member

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    There goes 5weeks of rent
     
  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Land tax isnt a secret. You signed the contract/s for the properties you own that now exceed the threshold.

    Some states (NSW as example) use smoothed averaged values to temper the issue of rise and fall in values. As seen in Perth values rose quickly fuelled by mining and resources only to stall and then fall. As Ross explained, some value changes can occur in one year to have a reduction in the next. That may (or may not be) a objection issue. Objecting to land tax isnt a DIY task as you are up against valuers. Only way to fight a valuer is with a valuer.