Laws, Regulations & Annotations

P

660.0000 POSSESSORY INTEREST

Annotation 660.0321

660.0321 Termination. A hangar was leased from the airport for the 2013-14 fiscal year. The lessee terminated the lease on March 24, 2014, and the hangar was leased to another lessee. A taxable possessory interest assessment is not made against the government-owned property, but rather against the right to possess publicly owned property held by the private citizen, and it is the private citizen's right to the use or enjoyment of the property interest (usufructuary interest) alone that is being taxed. In such cases, each respective taxpayer's possessory rights are subject to separate assessment and taxation as real property. Thus, since both the first and second lessees held a right to possess the property (even though the first lessee's right to possession terminated early), both real property interests were subject to taxation. This does not constitute double taxation, since double taxation occurs only when two taxes of the same character are imposed on the same property, for the same purpose, by the same taxing authority within the same jurisdiction during the same taxing period. The same property was not being taxed since the tax is against the property rights held by the private citizen, and the separate rights of each were being assessed. C 2/24/2015.