About Possessory Interests
If you rent or use government-owned property for your own benefit, you might have a possessory interest. This means you could be responsible for paying property taxes, even though the government doesn’t.
Government agencies don’t pay property tax. But private individuals, companies, or organizations using public land or buildings in a private, beneficial way may need to pay taxes on that use.
What Is a Possessory Interest?
A possessory interest happens when someone has private use of public property. This use must:
- Be independent
- Last for a set amount of time
- Provide exclusive use, not just brief or shared access
Examples include:
- A private dock on a public lake
- An airplane tie-down at a county airport
- Cattle grazing on state or federal land
- A private business renting government office space
- Food vending machines in a public building
- Cable lines installed on public land
- Employee housing on government-owned land
Frequently Asked Questions
Government agencies don’t pay property taxes. But if you benefit from using government property, your use is still taxable.
Possessory interest taxes help fund:
- Schools
- Fire and police services
- Flood control
- Community health programs
- Parks and other public services
Possessory interests are listed on the unsecured roll. This means the interest isn’t tied to property you own. If the tax isn’t paid, the county can’t take the property—it belongs to the government.
- Unsecured tax bills are due in full by August 31
- They are not split into two payments
- If unpaid, penalties apply after August 31
For questions about paying unsecured taxes, contact the Marin County Tax Collector at 415-473-6133 (CA Relay 711).
The Assessor looks at:
- What you’re allowed to do with the property under your lease or permit
- How long you’ll be using the property
- That you don’t own the property—just the right to use it
Only the value of your right to use the property is taxed. The government’s ownership is not taxed.
- The person or business using the property on January 1 is responsible for the full year’s tax
- If you stop using the property after January 1, you’re still responsible for the full tax
- The Assessor does not prorate these taxes
Each year, every government agency in Marin County must share information about who is using their property.
The Assessor:
- Reviews the information
- Determines if a possessory interest exists
- Sends out assessments based on that use
This helps ensure fair and accurate assessments for everyone.
For detailed rules and guidance, read the Assessment of Taxable Possessory Interests Assessor's Handbook from the California State Board of Equalization (BOE).
Still have questions? Contact us at 415-473-7215 (CA Relay 711).