Tax Type
Property Tax
Description
Taxable Leasehold
Topic
Property Subject to Tax
Taxability of Persons and Transactions
Date Issued
03-06-1970
The value of a taxable leasehold1 is based upon the relation of the leasehold to the potential income a buyer could derive from his right to use and occupy the premises. The county's assessment ratio should be applied to the fair market value of the leasehold. There is no requirement that a lease be in writing, no matter what the length of the term of the lease. A lease is assumed to continue as long as it will be mutually beneficial to both parties.
1 A taxable leasehold is one in which the owner is exempt from assessment and taxation.
Attorney General's Opinion