Property tax is a tax on the market value of the property you own, including land, buildings, cars, business inventory, etc. In most cases, the property tax rates are fixed as a percentage of the value of the property. Assessing the property is very subjective and golf course owners and operators face ongoing challenges with being targeted with special tax assessment policies that often fail to provide fair and equal treatment.
Most states require real and personal property, including golf courses, to be assessed based on fair market value. Tax assessors use three approaches to calculate that value: the market, income and cost approach. The most common assessment method for golf courses is the cost approach.
Many states have enacted preferential tax treatment programs for certain land uses, including golf courses and other open space or recreational land, that provide an economic incentive to property owners to preserve the land for open space or recreational purposes.
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