LAND
Vacant and unimproved land may be fulfilling its owner's purposes as a water detention area, a source of timber, a natural preserve, a farm, a privacy/security buffer, or a recreational/hunting area. For many owners, vacant land has not yet fulfilled the owner's purpose - development. While vacant land usually has little to no personal property associated with it, the land itself, as real estate, is valued by the assessor for taxation.
CONCERNS FOR LAND
Property Tax Services, Done Right, Go Far Beyond Return Filing
Property tax returns and appeals divert attention away from more important projects and regular finance operations, and never at a convenient time. The diversion of staff, not to mention the costs of missed opportunities, are too expensive not to call in a quality consultant.
REAL ESTATE
Vacant or raw land may be serving its purpose to the owner in its raw form. It could be acting as a security and privacy buffer for another property. It may be a natural preserve or a recreational area. Other vacant land, however, is seen by its owner and the market in general as a project in waiting. The land owner is looking forward to that buyer who wishes to turn the land into a neighborhood, retail center, or industrial park. Land values are generally governed by location, access, soil quality, slope, and visibility, all within the context of the surrounding real estate market. Consequently, other land sales in the area are usually indicative of the subject property's value. However, the analysis must contemplate the numerous factors which effect those sales, such as timing and location differences.
EXEMPTIONS
Numerous jurisdictions offer, sometimes locally and other times statewide, partial or complete exemptions for certain land uses or special valuation methods for certain land uses. Examples relevant to land uses can include pollution control exemptions, conservation exemptions, non-profit exemptions, common ownership valuation, cemeteries, and agricultural valuation. Such exemptions may be written in the state constitution or be buried in local code. Many require extensive documentation and an application process to one or many governing authorities for a single exemption.
INDUSTRY REVIEW
For clients holding land for a specific purpose, either as a recreational hunting ground or to be developed for a special use, Testudo can review the market for that use - prices, competition, customer base, trajectory, and the numerous other facets that are relevant to determining a just taxable value of the land.
COMPLIANCE
Most states require agricultural and other land uses which receive special valuation or exemptions to maintain, if not file, records to be used by assessing authorities, be they local or state officials. Such returns must be timely filed or penalties and the revocation of rights, such as the right to appeal the resultant value or loss of an exemption, may be enforced against the tax payer. A 10% tax penalty is common for late returns.