real estate property tax deduction

The link below is to the letter from the IRS Chief Counsel written to a request from the CA FTB. It says "there is no statutory or regulatory requirement that a real property tax be an ad valorem tax to be deductible for federal income tax purposes." However, if not ad valorem, assessments based other than on the assessed value of the property, may be deductible if they are levied for the general public welfare by a proper taxing authority at a like rate on owners of all properties in the taxing authority?s jurisdiction, and if the assessments are not for local benefits (unless for maintenance or interest charges)."

Alan wrote in news:kk2lgr$c63$ snipped-for-privacy@dont-email.me:

Thanks. I did see this but don't know what a "local benefit" is?

scott s. ..

Think of it this way - if what you pay is in the nature of a fee for what you get in exchange, it's not deductible. But if you pay something and the money can go for whatever they want to use it for, it's a tax.

Let's say the tax authority covers a county. Property owners in a 3 square mile part of the county are assessed for new street lights. Not deductible. Only the property owners who received the benefit were assessed. Add the assessment to cost basis. Let's say the county assesses all property owners in the county and they spend money to install street lights in that same 3 square mile area. Deductible.

Alan wrote in news:kk52lc$9aj$1@dont- email.me:

OK that makes sense. So the county operates two landfills and an incinerator that any resident can use and we're taxed for it. I will deduct and let IRS challenge it if so inclined.

scott s. ..