What is a possessory interest assessment?
A possessory interest assessment is an assessment when a taxpayer has an exclusive right to use public nontaxable property. For example, A cabin may exist on Forest Service Land. The taxpayer owns the cabin but not the land. The taxpayer may have a 99 year lease on this land in which his cabin sits. The right to occupy this Federally Owned land is a possessory interest and is taxable to the private user.