The SRO have released an updated ruling regarding the taxation of land held by charities.
Ruling No: LTA-009 replaces the older ruling regarding the taxation of land. Land is exempt from land tax under section 74 of the Land Tax Act 2005 (the Act) if the Commissioner of State Revenue (Commissioner) determines that:
- land is used and occupied by a charitable institution (charity) exclusively for charitable purposes (section 74(1)(a) of the Act – referred to as current charity exemption in this ruling), or
- land is owned by a charity and vacant and declared by its owner to be held for future use and occupation by a charity exclusively for charitable purposes (section 74(1)(b) of the Act – referred to as vacant land charity exemption in this ruling), or
- land owned by a charity and leased for outdoor sporting, outdoor recreational, outdoor cultural or similar outdoor activities and available for use for one or more of those activities by members of the public (section 74(1)(c) of the Act – referred to as outdoor leasing charity exemption in this ruling).
The three limbs of the charity exemption have been labelled above for ease of reference.
The purpose of this ruling is to provide the Commissioner’s interpretation of the meaning of the charity exemption provided under section 74 of the Act. This ruling is provided as a guide only and is not exhaustive. If your circumstances are not covered in this ruling, please apply for a private ruling in accordance with Revenue Ruling GEN-009v3 – General Information on Private Rulings.