Assessable Leasehold Interests

In order for a Leasehold Interest to create a Taxable Interest: (1) The fee interest in the real property must be exempt from property taxes; (2) The property must be used primarily for the private benefit of the lessee with any public purpose being only incidentally served; (3) The lease must convey a Real Property Interest in the subject property to the lessee; (4) The property must not otherwise be the subject of a lawful agreement between a lessee and a local government, or instrumentality thereof, for payments in lieu of taxes entered into or amended on or after April 30, 2019; and (5) The Leasehold Interest must have a taxable value.