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What are the tax land basic laws that owners of property need to know? The list of laws is extensive and can be confusing in its complexity. Only an attorney well versed in real estate and tax land law can properly advise on all the ramifications of these laws. But for the land owner who wants to have a general understanding of tax laws, there are a few basic considerations.
Property Tax in All States
Every state in the U.S. has some form of property tax on real estate, including tax on the value of land. Some states have 2-rate taxation, also known as a split-tax rate, which has different valuations on land vs. structure and/or improvements.
Property Assessed at 100% FMV
States require that property (including land) to be assessed at 100 percent of fair market value (FMV). The FMV may be defined (various states may have different wording) as the price the property will bring when offered for sale by a person(s) or entity that want to sell it (but is not obligated to do so), and is purchased by a person(s) or entity who has no necessity to own it (they want to buy, but they don’t have to buy).
Assessments Tax Land Annually
Assessments of real estate (including property tax on land) are conducted annually as of the first day of January of the taxing year.
Uniform Assessments for Property of Same Classification
Assessments of real estate (land) are required to be uniform for property of the same classification. Examples of classifications may include residential, commercial, agricultural, recreational, timberland, etc.
Assessments Carried out by Appropriate County Taxing Authority
Annual real estate assessments for purposes of taxation are carried out by the appropriate county taxing authority. In some cases, this may be the county assessor’s office or the department of real estate assessments. Check with your taxing authority (the name is on your tax bill) with any questions.
Federal Tax Land Laws May Apply
Owners of timberland have federal tax laws that must be taken into consideration. There is a section of the Internal Revenue Service (IRS) code that specifically applies to land utilized for any timber-related activities.
Estate Tax Land Laws
Laws governing the handling and disposition of land in a deceased individual’s estate are also applicable, and vary according to state. Consult with a legal expert with any questions pertaining to tax potentially due in this circumstance.
Laws Governing Conservation Easement
If you are a land owner considering a portion of your land to be donated for conservation easement or land trust, you should look into the state’s laws governing such a purpose. There are specific tax considerations impacting short- and long-term financial goals, as well as estate planning considerations.
Property Tax in All States
Every state in the U.S. has some form of property tax on real estate, including tax on the value of land. Some states have 2-rate taxation, also known as a split-tax rate, which has different valuations on land vs. structure and/or improvements.
Property Assessed at 100% FMV
States require that property (including land) to be assessed at 100 percent of fair market value (FMV). The FMV may be defined (various states may have different wording) as the price the property will bring when offered for sale by a person(s) or entity that want to sell it (but is not obligated to do so), and is purchased by a person(s) or entity who has no necessity to own it (they want to buy, but they don’t have to buy).
Assessments Tax Land Annually
Assessments of real estate (including property tax on land) are conducted annually as of the first day of January of the taxing year.
Uniform Assessments for Property of Same Classification
Assessments of real estate (land) are required to be uniform for property of the same classification. Examples of classifications may include residential, commercial, agricultural, recreational, timberland, etc.
Assessments Carried out by Appropriate County Taxing Authority
Annual real estate assessments for purposes of taxation are carried out by the appropriate county taxing authority. In some cases, this may be the county assessor’s office or the department of real estate assessments. Check with your taxing authority (the name is on your tax bill) with any questions.
Federal Tax Land Laws May Apply
Owners of timberland have federal tax laws that must be taken into consideration. There is a section of the Internal Revenue Service (IRS) code that specifically applies to land utilized for any timber-related activities.
Estate Tax Land Laws
Laws governing the handling and disposition of land in a deceased individual’s estate are also applicable, and vary according to state. Consult with a legal expert with any questions pertaining to tax potentially due in this circumstance.
Laws Governing Conservation Easement
If you are a land owner considering a portion of your land to be donated for conservation easement or land trust, you should look into the state’s laws governing such a purpose. There are specific tax considerations impacting short- and long-term financial goals, as well as estate planning considerations.
