When rural production land which is exempt from State Land Tax (SLT) changes use, is SLT imposed?
And if not, why?
We wrote the Chief Commissioner of State Revenue to ask the question.
16th August 2011
Chief Commissioner of State Revenue
Lange Centre, Cnr. Hunter and Marsden Streets
PARRAMATTA NSW 2150
My Dear Chief Commissioner,
Regarding: When rural production land, exempt from State land Tax (SLT) changes use.
When rural production land changes use either, in whole or part, for the following industrial uses.
- Open Cut Mining.
- Underground mining.
- Extraction of natural gas.
- Wind Turbines are installed for the purpose of generation electricity for profit
Questions:
When rural land use and exempt from SLT, is subsequently used for the above industrial use:
1. Is SLT imposed?
If not,
2. Why?
Considerable concern exists about mining rural production land, such as, the renowned Liverpool Plains region in NSW, located generally within the Liverpool Plains and Gunnedah Shires LGA areas.
It appears unlikely rural acreage land acquired for Mining and Windmill energy generation, are subjected to SLT. This is indicated from SLT revenues raised in 2010, in the above Shires.
For example:
Liverpool Plains Shire
0 Residential = 0 SLT
109 Business = $ 93,557.
Gunnedah Shire
132 Residential = $ 93,219
142 Business = $275,256.
The combined totals number of business liable for SLT paid.
= From 251 liable business SLT paid = $368,813. (Commercial/ Retail/Industrial land use)
It appears SLT on business land in these Shire areas was raised on urban land only.
I would appreciate your response in due course.
Yours faithfully,
Mike Danzey
Follow up note
The Commission responded saying nothing except:
“Depends on the dominant use, whatever that means”
The Commission is very exact when imposing SLT on rental housing.