Land Valuation Act 2010 LGAQ Assessment of Impact on Councils.

Slides:



Advertisements
Similar presentations
Family Economics and Financial Education Take Charge of your Finances
Advertisements

1 Kenai Assessment Task Force To date we have explored different methods of assessing property for tax purposes It has been assumed that the primary reason.
Seekonk Board of Assessors
Prof. Dominique Fischer, Curtin University GST in Australia This presentation is illustrated and completed with the attached Excel workbook GST excel presentation.
Renting vs. Owning The Difference Between Renting and Owning a Home.
Component Accounting Briefing
Presentation Outline –Introduction –What is Planning –The Planning Profession –Planning Processes –Legal Considerations –How do Planning Issues Impact.
School funding reform – changes for Paper F Schools forums Autumn 2014 Presentation to the Sheffield Schools Forum Meeting on 18 September 2014.
 Special Elections And Post Mortem Planning.  Estate Planning after Death o Decisions made on the estate that Impact heirs Impact taxes Impact executor.
McGraw-Hill /Irwin© 2009 The McGraw-Hill Companies, Inc. LEASES Chapter 15.
Chapter 12 Calculation of Present-Use Value 1. Calculation of Present-Use Value Each property that qualifies for present-use value classification will.
Andrew Emmett & Sarah Clark Department of Water, Land and Biodiversity Conservation Donna Fox Wattle Range Council The NRM Levy Presentation to Councils.
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 2 Planning with Personal Financial Statements.
Present-Use Valuation Program Tony Simpson NC DOR Property Tax Division.
Chapter 11 Application for Present-Use Value 1. Application for PUV The present-use value program is a voluntary program that provides the owner with.
DAVE KUBIK DUBUQUE COUNTY ASSESSOR Senate File 295 Property Tax Changes Halloween 2013 East Central Iowa Clerk’s Association Fall 2013 Meeting Thursday,
Development Contributions Planning Agreements Environmental Planning and Assessment Act 1979 Part 4, Division 6, Subdivision 2 lindsaytaylorlawyers Level.
Renting vs. Owning The Difference Between Renting and Owning a Home.
Renting vs. Owning Family Economics and Financial Education Take Charge of your Finances.
1111 Operating Budget – March 5, Council Budget Direction – April 2012  City will move to three year budget cycle  City will hold tax increases.
Classification of PP&E
Community Development Department GRAND HAVEN DEVELOPMENT OF REGIONAL IMPACT City Council June 3, 2014.
Understanding USS changes Tim Fuery- Assistant Director of Finance.
Land Resource Economics Wednesday, Feb. 15. Characteristics of Land Unique – fixed in location Heterogeneous in topography, geology, hydrology, fertility.
11-1 ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
RENTING VS. OWNING FAMILY ECONOMICS AND FINANCIAL EDUCATION TAKE CHARGE OF YOUR FINANCES.
Planning with Personal Financial Statements
REASSESSMENT WHY BOTHER SINCE IT COSTS SO MUCH TO DO THE REASSESSMENTS?
Sunshine Coast Regional District Development Cost Charges July 3, 2014 Infrastructure Services Committee Bob Twerdoff.
Department of Natural Resources and Mines Valuation Systems & Recent Reforms Presentation to the Local Authorities Revenue Management Association Neil.
Rates Policy Review Presentation 2014/2015 CITY OF JOHANNESBURG.
Real Estate Principles and Practices Chapter 16 Investment and Tax Aspects of Ownership © 2014 OnCourse Learning.
Jan11/HS002 Benefit legislative changes effective from April 2011 LHA and JSA decreases and non dependant deductions increases The potential impact upon.
Government Stimulus Package Presented by: Duncan Barber.
Land Value Taxation Recapturing Community Created Land Values.
The new VicSmart process and provisions. What is VicSmart? VicSmart is a fast planning permit process A decision is expected to be made in 10 days All.
© 2012 Cengage Learning. Taxes and Assessments Chapter 14.
Rates Policy Review Presentation 2013 CITY OF JOHANNESBURG.
Fair Value Measurement By: Feras Alghamdi Shawneen Kelly Austin Tullos Meredith Whitaker.
Georgian Legislation on Involuntary Land Acquisition and Resettlement and WB OP 4.12 Tbilisi, May 2013 Klavdiya Maksymenko.
Presents:. Market Evaluation – Analyzing Property CMA Appraisal BPO.
EDIBLE TWECHAR GARDEN PROJECT. TRAINING GARDEN UNDER CONSTRUCTION.
Community Right to Buy (CRtB). What is it for? It’s one of many tools to allow communities to purchase land. Provides an opportunity for communities throughout.
© Stellae 1 Space modelling: the key to a successful property strategy AoC Estates Regional Meeting, 13th July 2011 Richmond upon Thames College, Twickenham,
Urban Land Transfer and State Monopoly in Value Capture in Ethiopia Daniel W. Ambaye Bahir Dar University, Ethiopia.
Housing Deciding between Renting and Owning a House.
School funding reform – changes for Schools forums Autumn 2013.
Municipal Managers’ Forum Upper Limits for Senior Manager 10 June 2016.
COPYRIGHT © 2011 South-Western/Cengage Learning 8 PowerPoint Author: Catherine Lumbattis Operating Assets Property, Plant, and Equipment, and Intangibles.
Family Economics and Financial Education Take Charge of your Finances
Local Property Tax (LPT)
Family Economics and Financial Education Take Charge of your Finances
STATUTORY INCOME Section 6-10 provides:
Superannuation changes and you
Seekonk Board of Assessors
The Difference Between Renting and Owning a Home
Family Economics and Financial Education Take Charge of your Finances
FEFE Take Charge of your Finances
Treatment of inventories and development costs
Property Taxes and Property Tax Recoveries
©2008 Prentice Hall, Inc..
Family Economics and Financial Education Take Charge of your Finances
Family Economics and Financial Education Take Charge of your Finances
Family Economics and Financial Education Take Charge of your Finances
Leasehold Transactions
S Corporation Built-in Gains Tax Rules Summary and Illustrations
Amy Brickland and Mark Holroyd Manchester City Council
©2010 Pearson Education, Inc. Publishing as Prentice Hall
K-W Public Schools Revoke & Replace Operating Levy November 5, 2019
Presentation transcript:

Land Valuation Act 2010 LGAQ Assessment of Impact on Councils

Land Valuation Act 2010 Background: LGAQ has sought site value for non-rural properties for many years At least 6 reviews of valuation system in Queensland have recommended this since mid 1970’s Catalyst for action now may be adverse Court decisions against the Department re Shopping Centre valuations and to align Qld with the rest of Australia Land Valuation Act 2010 commenced 20 September 2010

Land Valuation Act 2010 Key points: Valuations for non-rural land will be assessed on site value from 2011 Land that is zoned rural under a planning scheme will continue to be valued using the unimproved value methodology Concessions – subdivision remnant blocks etc – will, (as a legislative requirement), be reviewed by December 2012 Valuer General (VG) position reinstated

Land Valuation Act 2010 Site value: Site value is the market value of the land in its present state. It includes the value of any improvements made to the land including filling, clearing, levelling and drainage works Site value does not include structural improvements on the land such as houses, sheds and other buildings nor excavations necessary for the structural improvements on the land (such as building foundations, footings or underground car parks) DA’s, Leases, infrastructure credits etc (intangibles) are not considered

Land Valuation Act 2010 Unimproved Value: Unimproved value means the amount a parcel of land could be expected to sell for at the date of valuation, assuming that no improvements have been made to the land (e.g levelling, filling and drainage). Unimproved value does not take into account any improvements on the land, such as houses and fences. DA’s, Leases, infrastructure credits etc (intangibles) are also not considered

Land Valuation Act 2010 What if the land is zoned both rural and non- rural? If land is zoned both rural and non-rural the valuation methodology used is determined by the zoning that has the greatest land area. For example, if more than half the area of land is zoned rural, then the land will be valued using the unimproved methodology. Owners can apply to change from non-rural to rural if certain criteria are met

Land Valuation Act 2010 Other changes: Objection process will be longer (60 days not 45 days as at present), fairer and will require “real” justification by landowners Transition from unimproved to site can be “phased in” by VG for properties with an increase of more than $1M in value between the existing unimproved value and the site value in over a maximum of 12 years (while owned by the same party – “the offset allowance” A “deduction allowance” can be made by the VG for new site improvements for up to 12 years (while owned by the party that paid for the improvements) In 2011 landowners cannot have both the offset allowance and the deduction for site improvements made before the commencement of the LVA – the owner must choose one

Land Valuation Act 2010 Impact on Local Government: Annual valuation issued – except in unusual circumstances or if there is no market movement in the local government area First valuations will be issued in late March 2011 May need to model rates extensively – movement in valuations might be affected by site, market forces or time since last valuation issued As previously stated the time period for lodging objections has been extended from 45 days to 60 days, after the issue of the valuations Therefore, local governments may need to manage changes to valuations on objection or appeal decided after 1 July – be prepared for possible reductions to key or important properties (VG should keep councils informed)

Land Valuation Act 2010 Impact on Local Government (cont’d): Councils have proved adept at managing extreme shifts in value relativity over the last 8 years of volatility in the market Early modelling by DERM indicates that the vast majority of valuations will not be adversely affected in any material way by the shift to site value – some values may reduce in 2011 because of the slowdown in the market and removal of intangibles Heavily filled properties, such as some canal estates, will now have the site works included in their valuations. Under unimproved value they were excluded, leading to lower values We have the tools available to sort out the “extreme” shifts in valuation, if they occur after site value is introduced State Land Tax and Rentals are likely to cause more upheaval and protest than council rates

Land Valuation Act 2010 Impact on Local Government (cont’d): Existing averaging, capping etc processes will not be affected by change of valuation method from unimproved to site Minor changes to rating software will be needed to allow for information about property valuation method DERM will advise landowners whether their property has been valued as unimproved or site on their valuation notice Therefore, no need to advise on rates notice whether site or unimproved value – just “value”

Land Valuation Act 2010 Impact on Local Government (cont’d): For properties with “phase in” application, the valuation that will appear on the valuation notice to the property owner and will be used as a basis to calculate rates by local government will be the site value shown on the valuation notice, which has had the offset instalments or the site improvements deducted. The notice will identify if the site value is an adjusted value as a result of offset instalments or deduction allowance In 2011, the rateable valuation may be subject to change if the owner has the opportunity to chose between the offset allowance and the deduction allowance, if applicable

Land Valuation Act 2010 Impact on Local Government (cont’d): Not good practice to blame DERM for rating problems caused by movement in values – explore modelling of rating tools to get equitable outcomes In March 2010 the government announced that the introduction of site value was not a revenue raising measure Change of ownership might trigger loss of “phase in allowances or deductions” – new owners should do due diligence so they are aware rates will be based on a higher valuation than for the old owner A note on the title will alert potential purchasers that an allowance has been made to the valuation and will be removed on change of ownership

Land Valuation Act 2010 Impact on Local Government (cont’d): Valuer General/DERM have promised to work closely with Councils In the next few months, all local governments will either be invited to briefings/discussion forums or be consulted by senior staff from the State Valuation Service on the legislative changes and what changes in process local governments can expect

Land Valuation Act 2010 Questions? Thank you!