LAND TAX ACT 2005 - SECT 38 Assessment of joint owners of land

LAND TAX ACT 2005 - SECT 38

S. 38(1) amended by No. 28/2017 s. 57.

    (1)     Joint owners of taxable land are to be assessed for land tax (other than vacant residential land tax) on land in accordance with this section.

Note to s. 38(1) inserted by No. 26/2015 s. 30(1).

Note

Joint owners of taxable land include absentee owners who own land jointly and absentee owners who own land jointly with owners who are not absentee owners.

S. 38(2) amended by No. 26/2015 s. 30(2).

    (2)     Subject to subsections (2A) and (2B), joint owners of taxable land are to be jointly assessed for land tax on the land as if it were owned by a single person, without regard to—

        (a)     the separate interest of each joint owner; or

        (b)     any other land owned by any joint owner (either alone or jointly with someone else).

S. 38(2A) inserted by No. 26/2015 s. 30(3).

    (2A)     In the case where all of the joint owners of taxable land are absentee owners, the joint owners are to be jointly assessed for land tax on the land as if it were owned by an absentee owner who is not a trustee of an absentee trust.

Note

Under subsection (2A), the joint absentee owners will be jointly assessed for land tax at the applicable rates set out in Part 4 of Schedule 1. In addition, subsections (3) to (6) apply in relation to how each joint owner is to be separately assessed.

S. 38(2B) inserted by No. 26/2015 s. 30(3).

    (2B)     In the case where at least one but not all of the joint owners of taxable land is not an absentee owner, the joint owners are to be jointly assessed for land tax on the land as if it were owned by an owner who was not an absentee owner.

Note

Under subsection (2B), the joint owners will be jointly assessed for land tax at the applicable rates set out in Part 1 of Schedule 1. In addition, subsections (3) to (6) apply in relation to how each joint owner is to be separately assessed.

S. 38(3) amended by No. 26/2015 s. 30(4).

    (3)     In addition, each joint owner of taxable land is to be separately assessed for land tax on—

        (a)     the owner's individual interest in the land (as if the owner were the owner of a part of the land in proportion to that interest); and

        (b)     any other taxable land owned by the owner alone; and

        (c)     the owner's individual interest in any other taxable land.

S. 38(3A) inserted by No. 47/2020 s. 42.

    (3A)     For the purpose of assessing land tax under subsection (3), joint owners of taxable land who are joint tenants of the land are taken to hold the land as tenants in common in equal shares.

    (4)     There is to be deducted from the land tax assessed for a joint owner under subsection (3) an amount (if any) necessary to avoid double taxation, being the lesser of—

S. 38(4)(a) amended by No. 26/2015 s. 30(5).

        (a)     the amount determined by the formula—

where—

    A     is the proportion of the owner's individual interest in the jointly-owned land to the total interests in that land;

    B     is the total amount of land tax assessed on the jointly-owned land under subsection (2), (2A) or (2B); and

S. 38(4)(b) amended by No. 26/2015 s. 30(6).

        (b)     the amount determined by the formula—

where—

    C     is the value of the joint owner's individual interest in the jointly-owned land (as determined under subsection (3)(a));

    D     is the total value of all taxable land of the joint owner assessed under subsection (3);

    E     is—

        (a)     in the case where subsection (2) or (2A) applies, the amount of land tax assessed under subsection (3);

        (b)     in the case where subsection (2B) applies—

              (i)     if the joint owner is not an absentee owner, the amount of land tax assessed under subsection (3); or

              (ii)     if the joint owner is an absentee owner, the amount of land tax that would have been assessed under subsection (3) if that owner were not an absentee owner or a trustee of a trust.

S. 38(5) amended by No. 26/2015 s. 30(5).

    (5)     For the purposes of this section a joint owner may be separately assessed under subsection (3) in respect of land even though no land tax is jointly assessable in respect of that land under subsection (2), (2A) or (2B).

S. 38(6) inserted by No. 85/2005 s. 25, amended by No. 26/2015 s. 30(7).

    (6)     If a joint owner of land is a trustee of a trust or an absentee trust to which the land is subject, no regard is to be had to the existence of the trust in relation to the joint assessment of the joint owners of the land as referred to in subsection (2), (2A) or (2B), but regard is to be had to the existence of the trust in relation to the separate assessment of the joint owners as referred to in subsection (3).

S. 38A inserted by No. 28/2017 s. 58.