For the purposes of land tax, there are three land classifications:

• General Land
  This includes properties such as rentals, holiday homes, vacant or commercial land. This land is taxable.
  
  
• Principal Residence Land
  There is a dwelling on this land. The property must be where the owner (who has at least a 50 per cent interest in the land) resides as their principal place of residence. This means it is where they ordinarily eat and sleep the majority of the time. This land is not taxable. 

• Primary Production Land
  The property must be used substantially for the business of primary production undertaken with a reasonable expectation of profit. Alternatively, it may be a private timber reserve, permanent timber production zone or have in effect a certified forest practices plan. This land is not taxable.

Refer to the Land tax guideline for additional information.

Change in land classification

If land ceases to be principal residence, primary production or exempt land, you must:

• ​notify the Commissioner in writing within 30 days of the change, using the Change in land use application.
   

Apportionment of land

Land classified as Principal Residence or Primary Production Land is not ordinarily subject to land tax.

Section 26 and section 27 of the Land Tax Act 2000 relate to where the land is also used for purposes other than as the owner's or related person's principal residence or primary production purposes. In those situations, the Commissioner is required to apportion the land value of the land between either Principal Residence Land or Primary Production Land (not ordinarily taxable) and General Land (taxable).

Land tax is then payable for any part of the land classified as General Land.

Refer to the Land tax and apportionment of principal residence land guideline or the Primary Production Land guideline for more information.