Unsecured Possessory Interest Taxes

Overview
A taxable possessory interest is a private interest in publicly owned real estate.  It exists as a result of the possession or the right of possession of land and/or improvements that is owned by a nontaxable owner (a public agency).  (California Revenue & Taxation Code 107)

Possessory interest rights are taxable whether they are month-to-month agreements, long-term leases, or occasional recurring uses.  The assessable value of a possessory interest is most often a function of the estimated term of possession and the economic rent for the use of the property.  The value of lessee-owned improvements, if any, is also assessed.

The various types of taxable possessory interests range from the use of airport tie-downs, public marina boat berths and city or school facilities to the use of waterfront lands by large industrial plants.

Possessory interests are assessable throughout the state and are governed by state law and statutes including but not limited to: Revenue & Taxation Code Sections 60 through 62, 107 through 107.9, and 480.6; and Property Tax Rules 20 through 29, 462.080 and 467.

For further information on possessory interest taxes, please contact the Assessor's Office Public Service Division from 8:00AM to 4:00PM, Monday-Friday.