A business owner has a 1000 square foot lot he has been using for parking. The Department of Transportation has come out and essentially changed the zoning and eliminated the lot as a place for parking.
Is there some sort of tax deduction for something like that - when the government does something to make a property worth significantly less than it had before?
Yes, there may be a claim that it's a "taking" that needs to be compensated. But that's a different question.
Thanks for any thoughts.
It's evidence that the land is now overassessed, which would be a matter for the land owner to take up with the county assessor. That would reduce future property taxes.
I don't know of any effect upon income taxes.
Do building and zoning codes create property rights in and of themselves? They do affect the market value of the land and building and other improvements, but I'm not familiar enough with the law that once land receives zoning favorable to the landowner, that has created a property right and no future government decision can affect how the land may be developed.
Is it in a flood plain? Did the flood plain map change? Can cars be parked there if the surface is changed to permeable?
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