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Special land tax is a one-off tax charged in certain circumstances where land that has been exempt from land tax is no longer exempt from land tax.

It is charged at a rate of 5 per cent of the taxable value of the land and is imposed on the date the land ceases to be exempt. If you are an absentee owner, you will be charged at a rate of 5.5 per cent in 2016, and 6.5 per cent from 1 January 2017.

When does it apply?

Special land tax applies if certain exemptions under the Land Tax Act 2005 cease to apply. The special exemptions include:

  • Sporting, recreational or cultural land,
  • Rooming houses,
  • Residential care facilities and supported residential services,
  • Residential services for people with disabilities,
  • Caravan parks,
  • Land owned by a public statutory authority, or
  • Land used as a mine

Note: special land tax does not apply if land ceases to be exempt land only because it is compulsorily acquired.

The liability arises when the relevant exemption ceases to apply to the land. The date special land tax is payable will be set out in the notice of assessment that we send you.

Who is liable?

Where one of the exemptions listed above is lost immediately or within 60 days of a change of ownership, the person who owned the land immediately prior to the change of ownership is liable to be assessed for special land tax. In these circumstances, the person liable is generally unable to defer payment.

If there is no change of ownership, the person who owned the land immediately after the exemption ceases to apply is liable. That person may elect to defer payment for three years, or until such time as there is a change in ownership of any part of the land, whichever is sooner.

If you have received a special land tax assessment and would like to defer payment of the special land tax, contact us on 13 21 61.