COMMENT OF THE DAY: LOTS CLEARED BY UNFORCED ERROR “In my neighborhood there is one empty lot where a developer purchased a really lovely old home, deemed it a “teardown,” and THEN found out that deed restrictions prohibited subdividing the [really] large lot. . . . On the other hand, if the potential buyers of the land in my neighborhood had done their due diligence at the beginning (when the estate was being probated the buyers were lining up, it was nuts), perhaps the old ranch house would have been renovated, or a new single home would have gone up, appropriate for the neighborhood. Now the land is empty save the old citrus trees and tumbled down brick wall at the egdes of the yard. And the owners get to pay property taxes based on their inflated valuation of the land, and keep it mowed, too. Maybe the present day lending restraints will prohibit such magical thinking by developers in our old neighborhoods. Meanwhile there are plenty of undeveloped lots laying around because the original plan didn’t quite work out the way the buyer intended.” [Karen, commenting on A Sunset Heights Lot Size Turf War]
“And the owners get to pay property taxes based on their inflated valuation of the land, and keep it mowed, too.”
If the permit for tearing it down occurred prior to the January 2010, then for Tax Year 2010 the taxes will be just for the land value (if the proper paperwork if filed).