requesting amendment to land tax

Hi peoples

I have received my land tax statement for 1 jan to 31 dec 2017
I plan to request an amendment / objection with SRO (vic)

In order to stand best opportunity to have the taxable value reduced I'm after some positive input.

Short story
last year 2016 land taxable value was $395k for 1 whole 1000m block of land
since then I have subdivided the land in half,
lot 1 = 471m
lot 2 = 390m
the rest is common property / driveway
2017 land tax lot 1 with street frontage = $330k
2017 land tax lot 2 at rear with battleaxe access = $375k

In effect land tax has jumped about 80..... 87% !! from last year.
I wish to challenge that with lot 2 being the smaller block, that the taxable value of the rear lot 2 should be less than the front, and an 87% jump is very unreasonable.

any comments pls

 

Victoria calculate land tax differently to NSW. Have a read of the Acts. I recall that even parcels where separate tenants leased the land were hit with sizable LT bills.

 

On what basis do you wish to object?

 

Gday Terry,

If it was'nt clear above

its basically 87% jump since last years land tax
& the smaller parcel of land at the rear without street frontage is higher than the front, Thus I feel that the taxable land value for the rear should be more around 300k or less rather than $375k

 

...but you subdivided the land since last year... Surely you expected a big increase in land value?

 

So you think the valuation is too high? Or the jump in value too high?
What are you basing this on?

 

It seems odd that the smaller rear lot is valued higher than the front. However I would think that your only course of objection is against the values applied to the land. Are the valuations above market value? Your objection should include some recent sales evidence to support your claim.

 

Surely the whole point of subdividing is to increase value?
Marg

 

Thanks Archer
I'll try to find some comparisons

 

Yep expected a jump i guess in land value, perhaps 50% max but for the fact that it his jumped so much (almost double in 2 years in an area that has seen average values maybe go up only 20%, is crazy) is what has me surprised.
If it was based on the capital improved value, sure maybe more than 50%, but this is based on the land 'site value'

 

Sorry to tell you this. But amount of land tax increase is not a valid reason for objection.
Suggest look for similar sized blocks / situation - is your land tax higher ?

 

I really know little about land taxes and VIC, but, if I was you and you are going to challenge, first I would get a registered valuer to value each block separately. It would seem odd that a smaller rear block would be worth more.

One thing I do know, is the govt. like to get hold of as much as possible, that goes for Fed, State and Local. These days they tend to thing "Government" is a for profit business.

 

The rear block has use of the access handle (140m2 approx) so it's bigger than the front block.
Both blocks are building blocks without restrictions
Both blocks have services but didn't previously.
Subdivision in itself is the creation of a new block.

If you came to sell the blocks, would you get % more than what you put into the site?

 

You dont normally object to land tax assessments unless they are factually incorrect.

You object to the VG valuation notice. And it must be done within the time limits. The normal basis for objection is that the land value is too high based on other comparable land in the local area. Or a issue of adverse factor may affect the value so that you land is not as homogenous as other land and so it has less capability for use reducing its value eg : It has a Koala colony in the middle of it (A client example).

Your grounds appear to relate to the valuation of each parcel. What comparable sales data for vacant land do you posses ? A discussion with a local valuer may assist you to determine if either are valued too high. They will guide the issue to object to and arm you with data. Its not cheap of course. Sometimes the issue repeats year after year. The valuation also affects rates

Land Valuation Objection | State Revenue Office

 

The whole of the land is incl in value. You dont exclude common access land