Taxable Possessory Interest in Public, Non-Taxable Land

A taxable Possessory Interest may exist whenever there is a private, beneficial use of publicly-owned, non-taxable real property. Such interests are typically found where private individuals, companies or corporations lease, rent or use federal, state or local government owned facilities and/or land for their own beneficial use.

Possessory Interests include such things as:

  • A boat dock built on a public lake or river
  • A mini-storage facility built under a freeway
  • A private walkway built above a city street
  • An airplane tie-down at a county airport
  • Cattle grazing rights on Federal or State land
  • Private companies leasing government buildings
  • Tenants, concessionaires and exhibitors at Cal-Expo or the Community Center at any time during the year
  • The right to grow crops on land owned by a community college district
  • The right to have food vending machines located in a government building
  • The right to operate a rental car agency at an airport