Possessory interest tax

A taxable possessory interest (PIT) is defined as a private interest in government-owned property or the right to the occupancy and use of any benefit in government-owned property that has been granted under lease, permit, license, concession, contract or other agreement. The use of the property must be in connection with a business conducted for profit.

In other words, individuals or businesses who lease trust land may need to pay taxable possessory interest. Nearly all leases on trust land are eligible, including agricultural uses. If you hold more than one lease with our agency, you may receive multiple assessments. If your lease spans a county border, you may receive multiple assessments. 

State statute 39-1-103 (17)(a)(II)(A) is a result of a legislative action and the statute enables the County Assessor's office to charge a tax on leased lands. The State Land Board has no control over this tax. We do not assess or collect these taxes. The only role that the State Land Board plays in this process is to provide an annual report to the Division of Property Taxation listing a record of our state lease data.

Per the terms of our contracts, failure to comply with your County Assessor's Office may result in lease termination.

The amount of PIT collected per county is posted on county map server. The State Land Board earns money for public schools by leasing trust land. We are a self-funded agency and receive no tax dollars. Read our annual report.

If you have questions about PIT, please contact your County Assessor's Office.