HERITAGE
VALUATIONS – STAMP DUTY (NSW)
Revenue
Ruling No. LT15
Heritage
Valuations - Division 6 of the Heritage Act (NSW)
PREAMBLE
Under
the Heritage Act 1977, the Minister responsible for administration of
the Act may make interim conservation orders and permanent
conservation orders in relation to land on which is situated "...
buildings, works, relics or places of historical, scientific,
cultural, social, archaeological, architectural, natural or aesthetic
significance for the State".
In
view of the effect that a permanent conservation order may have on
the value of land, certain rating and tax concessions apply to land
which is subject to such an order.
These
concessions are:-
(a) provision for a "heritage valuation" to be used for
rating and taxing purposes, including land tax purposes, which takes
into account the effect of an order on the value of the land; and
(b) assessment of each parcel of such land as if it were the only
land owned by that person.
The
purpose of this ruling is to explain the concessions and the steps
which must be taken to obtain the benefits of those concessions.
RULING
1. Section 124 of the Heritage Act requires the responsible Minister
to request the Valuer-General to make a "heritage valuation"
in respect of land, as soon as practicable after the date on which a
permanent conservation order takes effect. Under section 45, an order
takes effect on and from the date of publication in the N.S.W.
Government Gazette.
2. The Valuer-General is also required, under section 125, to make a
"heritage valuation" on each occasion that land which is
subject to an order is valued (or revalued) for land tax purposes.
3. A "heritage valuation" is defined at section 123 to mean
a valuation based on the assumption that:-
(a) that land may only be used for the purpose, if any, for which it
was used on the "relevant date" (ie the date on which the
Minister requested the valuation under section 124(1), or the date on
which the valuation was made if it was made under section 125);
(b) all improvements on that land as at the "relevant date"
may be continued and maintained in order that the use of that land
may be continued; and
(c) no improvements, other than those referred to in paragraph (b),
may be made to on that land.
4. A "heritage valuation" would normally be expected to be
lower than the land value for land tax purposes, but this is not
necessarily so in all cases.
5. The Heritage Council is responsible for making recommendations to
the Minister. It may initiate inquiries and make recommendations or
it may be required by the Minister to furnish a recommendation
relating to a particular item. The Minister must seek the advice of
the Council before making an order.
6. A land owner who wishes to obtain relief from land tax under a
permanent conservation order may apply to the Minister for the making
of an order under section 38, and the Minister may refer such a
request to the Heritage Council for a recommendation.
7. There is no provision for the determination of a "heritage
valuation" for land which is subject only to an interim
conservation order, or to an order issued by the Minister under
section 130 preventing the demolition of building or works pending a
further inquiry by the Heritage Council. However, where an interim
conservation order existed immediately before the date on which a
permanent conservation order took effect, a "heritage valuation"
may be retrospectively applied from the date on which the interim
order took effect, under section 127(2). In such cases, land tax
shall be reassessed on the basis of the "heritage valuation",
and any amount paid in excess of the amount of the reassessment shall
be refunded, while any amount short-paid shall be recoverable as
arrears.
8. Land which is subject to a permanent conservation order shall be
assessed for land tax purposes on the "heritage valuation"
as if each such parcel of land were the only land owned by the owner.
For example, "A" owns the following three parcels of land,
of which parcel 1 is subject to a permanent conservation order:
Adjusted Value
Parcel 1 $145,000
Parcel 2 $100,000
Parcel 3 $150,000
Land tax would be assessed as follows (using the tax scale
applicable for the 1988 tax year):-
Parcel 1
$100 + 2% x ($145,000 - $125,000) = $ 500
Parcel 2 & 3
$100+ 2% x ($250,000 - $125,000) = $2,600
Total tax payable $500 + $2,600 = $3,100
9. Under section 127(3), where land ceases to be subject to a
permanent conservation order, the concessions available under the
Heritage Act cease to apply from the date of cessation of the order.
R. P. DALEY,
for Chief Commissioner.
10 June, 1988