Reg 1.164-4(a) states "The real property taxes deductible are those levied for the general public welfare by the proper taxing authorities at a like rate against all property in the territory over which such authorities have jurisdiction," but does that establish an authoritative restriction on the definition of deductible real property taxes under IRC 164(a)(1) that they must be assessed "at a like rate against all property in the territory over which such authorities have jurisdiction?" This statement is part of the following paragraph which seems to be intended as an interpretation of the IRC 164(c)(1) denial of a tax deduction for local benefit assessments:
So-called taxes for local benefits referred to in paragraph (g) of § 1.164-2, more properly assessments, paid for local benefits such as street, sidewalk, and other like improvements, imposed because of and measured by some benefit inuring directly to the property against which the assessment is levied are not deductible as taxes. A tax is considered assessed against local benefits when the property subject to the tax is limited to property benefited. Special assessments are not deductible, even though an incidental benefit may inure to the public welfare. The real property taxes deductible are those levied for the general public welfare by the proper taxing authorities at a like rate against all property in the territory over which such authorities have jurisdiction. Assessments under the statutes of California relating to irrigation, and of Iowa relating to drainage, and under certain statutes of Tennessee relating to levees, are limited to property benefited, and if the assessments are so limited, the amounts paid thereunder are not deductible as taxes. For treatment of assessments for local benefits as adjustments to the basis of property, see section 1016(a)(1) and the regulations thereunder.
CCA 201310029 that Nilodop quoted above seems to take that position:
Nilodop wrote:Second, the fire fee is not levied at a like rate as § 1.164-4(a) requires. Although neither the Code nor the regulations define “like rate”, we believe that the term requires that the rate must uniformly apply based upon an independent variable, such as property value or parcel or structure size, to be considered similar or “like.” A charge of $150 against each structure no matter how large or small is not levied at a “like“ rate.
Third, the fire fee is not imposed against all real property throughout the taxing authority’s jurisdiction as § 1.164-4(a) requires. First, It is imposed only against real property containing structures, not all real property within the state. Second, it is imposed only within state responsibility areas as designated by the state Board of Forestry and Fire Prevention, not all real property throughout the taxing authority’s jurisdiction. These areas are geographically limited and do not cover the entire state of California or the entirety of the territory over which the appropriate taxing authority within the state has jurisdiction.
But if I'm reading this right, that regulation dates back to 1964, and in 1978 the IRS issued a revenue ruling that does not mention this requirement:
Real and personal property taxes imposed at different rates in West Virginia pursuant to section 11-8-6 of the West Virginia Code are deductible as taxes under section 164(a)(1) and (2) of the Internal Revenue Code of 1954. Although section 164(b)(2)(A) specifically requires that, to be deductible, general sales taxes be imposed at a single rate, there is no comparable requirement with respect to real and personal property taxes.