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it does not include taxes assessed against local
benefits. [Emphasis added.]
Rev. Rul. 80-121, 1980-1 C.B. 43, which both parties cite,
provides additional guidelines for determining whether a tax is
imposed on an interest in real property. (Petitioner does not
contend that the rollback tax is a tax that is assessed against
local benefits rather than one that is levied for the general
public welfare.) Rev. Rul. 80-121, 1980-1 C.B. 43 addressed, in
part, whether a Vermont tax imposed on gain from the sale or
exchange of certain land was deductible under section 164(a)(1)
as a real property tax. Rev. Rul. 80-121, 1980-1 C.B. 43, 44-45,
states:
Some of the characteristics of a tax imposed on
real property or on an interest in real property are:
(1) the tax is generally imposed or triggered by the
ownership of real property and not the exercise of one
or more of the incidents of property ownership, such as
use or disposition, (2) the tax is measured by the
value of real property, and (3) liability for the tax
is not solely personal. [Citations omitted.]
Petitioner contends that the rollback tax should not be
treated as a real property tax for purposes of section 164(a)(1)
since the rollback tax lacks the necessary characteristics of a
real property tax as set forth in Rev. Rul. 80-121, 1980-1 C.B.
43. In support of this argument, petitioner claims that the
rollback tax differs from a "garden variety" real property tax in
that the former is not a tax due and owing until the owner-user
determines to trigger the tax. Petitioner also avers that Rev.
Rul. 80-121 guidelines except the rollback tax from real property
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