Council Rates and Land Valuation

L[Deactivated] on 16/09/2012 - 22:37

Hi All

I'm wondering anyones experience with contesting land valuation used for land tax,
I ask because I purchased a property this year (primary residence) and land tax valuation is 10% more than purchase price in a tough market.
Meaning I believe I'm being overcharged.

By law we are entitled to contest the valuation Up or Down
http://www.yarraranges.vic.gov.au/Residents/Rates/Valuations

Is getting the council to revalue the property closer to the market sale value and lowering my land tax bill 10% worth the effort?
Is it better or worse or same on capital gain liability to reduce this years valuation and have it increase considerably in 2 years to their valuation again?

Financial

Comments

  • johnh on 17/09/2012 - 09:46

    From what I've read I believe that land tax is not payable on your primary residence.

  • sparkles on 17/09/2012 - 09:58

    I thought that Capital Gains Tax will be irrelevant seeing that it is your primary residence.

    Our value went up loads this year, significantly over what I think we would get on market, far more than I would pay for the property, I know that much.

  • mskeggs on 17/09/2012 - 12:29

    Are you conflating council rates, land tax and CGT?
    CGT is rated on actual capital gain, nothing to do with value estimates, and is not payable on your primary residence anyway (or for up to 6 years after you move out).
    Land tax in Vic is not levied on your place of residence, so you should not have to pay it (see here: http://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/DF44248454… )
    Assuming you are actually talking about the land valuation for council rates purposes, I am very surprised the valuation exceeds your purchase price, as valuations typically trail market prices.
    Since you can easily demonstrate actual value (from your purchase records), it would certainly be worth writing a letter to the address in your link.

  • batrarobin on 20/09/2012 - 17:57

    Over here in WA, the Council doesn't do the valuation…They simply get an advice from Valuer General.

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