Answer
Oct 29, 2022 - 05:43 AM
Yes - a tower lease can increase your property taxes. How much depends on the state and the county/township and how they tax towers. Most states tax towers as personal property along with the wireless carrier's equipment. Typically in those states, the wireless carrier or tower owner (or both) pay personal property taxes directly to the county/township.
However, in some states, a tower is taxed as real property. In those states, the tax burden then is on the property owner. Some jurisdictions in these states will tax on the fair market value of the tower (which can be $1M or more). Others will tax the replacement value or construction cost.
To make matters even more complicated, some personal property states try to tax the landowner on the value of the rental income.
To figure out how your state/county/township taxes- you have to call the tax assessor for the area. There isn't any other resource I know of that provides this information.
No matter how your state/county taxes towers- there is an easy answer. EVERY single cell tower lease should require that the tower owner or wireless carrier pay for any increased taxes (real or personal) that are attributable to the tower. Many cell tower companies will add language that they will pay for personal property taxes related to the tower. We strongly advise that the cell tower owner pays for real and personal property taxes attributable to their "improvements," even in states where towers are taxed as personal property. Otherwise, if the state ends up taxing towers as real property in the future (like Pennsylvania did 5-10 years ago), you are protected.
However, in some states, a tower is taxed as real property. In those states, the tax burden then is on the property owner. Some jurisdictions in these states will tax on the fair market value of the tower (which can be $1M or more). Others will tax the replacement value or construction cost.
To make matters even more complicated, some personal property states try to tax the landowner on the value of the rental income.
To figure out how your state/county/township taxes- you have to call the tax assessor for the area. There isn't any other resource I know of that provides this information.
No matter how your state/county taxes towers- there is an easy answer. EVERY single cell tower lease should require that the tower owner or wireless carrier pay for any increased taxes (real or personal) that are attributable to the tower. Many cell tower companies will add language that they will pay for personal property taxes related to the tower. We strongly advise that the cell tower owner pays for real and personal property taxes attributable to their "improvements," even in states where towers are taxed as personal property. Otherwise, if the state ends up taxing towers as real property in the future (like Pennsylvania did 5-10 years ago), you are protected.
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