Friday, October 24th, 2014

What Properties Do Not Qualify for GO Zone Tax Treatment?

The following properties do not generally qualify for GO Zone tax treatment:

1. Private or commercial golf course

2. Country Club

3. Massage Parlor

4. Hot tub facility

5. Suntan facility

6. Property where the principal sale is alcoholic beverages for consumption off premises

7. Property used directly for gambling

8. Property used for animal racing or the on-site viewing of such racing

These are specific exclusions in GO Zone legislation as legislators did not think this type of operation is worthy of GO Zone benefits. But, at times, some of these uses are housed in buildings which would otherwise qualify for GO Zone treatment. The legislation therefore, carved-out some exceptions predominately based on the argument that if the excluded activities were a minor source of income, then the major use of the building would be judged against the criteria for GO Zone treatment. These exceptions needed to be handled on a case-by-case basis.