New South Wales Consolidated Acts

LAND TAX MANAGEMENT ACT 1956 - SECT 21C

21C Liability of lessees of land owned by Crown or local government bodies

(1) The Crown, a local council, a county council or a joint organisation is not liable for land tax in respect of land it owns (except as specifically provided by Part 3).

(2) A lessee (other than a sub-lessee) of land or part of land owned by the Crown, a local council, a county council or a joint organisation is for land tax purposes deemed to be the owner of a parcel of land (
"the notional parcel" ) consisting of the land or part leased. The Crown, local council, county council or joint organisation is then not to be considered owner of the notional parcel.

(3) If there are joint lessees, they are deemed to be joint owners of the notional parcel.

(4) For the purposes of determining the lessee's land tax liability when the notional parcel consists of a part of land, the land value of the notional parcel is the land value of the entire parcel multiplied by the apportionment factor.

(4A) For the purposes of this section, the
"apportionment factor" is the proportion that the rental value of the notional parcel bears to the rental value of the entire parcel.

(4B) The Chief Commissioner may request the Valuer-General to determine the land value of the notional parcel.

(4BA) If a request is made under subsection (4B)--

(a) the Valuer-General must determine the land value of the notional parcel, and

(b) the land value so determined is, subject to subsection (4C), the value of the notional parcel for land tax purposes, and is to be entered in the Register accordingly.

(4BB) For the purpose of determining the average value of the notional parcel under section 9AA, if the notional parcel was not leased on 31 December immediately before either or both of the preceding land tax years (within the meaning of section 9AA (1)), the average value of the notional parcel is to be determined as provided for by section 9AA (7) (as if the notional parcel did not exist on the date or dates of 31 December on which it was not leased).

(4C) Part 3 (Notices and objections) and Part 4 (Appeals to Land and Environment Court) of the Valuation of Land Act 1916 apply in respect of the apportionment factor determined under subsection (4BA) in the same way as those Parts apply in respect of a valuation under that Act.

(5) In this section,
"part of land" includes a building on land and part of a building on land.

(6) This section does not apply to the following leases--

(a) a lease or a lease of a class prescribed as exempt from this section,

(b) a lease to which section 21 applies,

(c) a lease of land from the Crown entered into or renewed before 1 January 1987 the terms of which relating to rental payable have not been varied since that date,

(d) a lease of land from a local council, a county council or a joint organisation entered into or renewed before 1 January 1991 the terms of which relating to rental payable have not been varied since that date,

(e) a lease of land in respect of which the Crown is liable for land tax (otherwise than under section 21CB),

(f) a lease the term of which (including any term available under an option) is less than 12 months,

(g) a lease in respect of which the lessee is the Crown, a local council, a county council or a joint organisation,

(h) a lease of land on any part of the Island under the Lord Howe Island Act 1953 .

(7) This section is taken to have applied on and from 31 December 1988 to land owned by the Crown.