Possessory interest refers to the right of an individual to occupy a piece of land or possess a piece of property. A person with a possessory interest does not own the property, but the person has some present right to control it such as a lease. Possessory interest often arises regarding taxation of the possessory interest. A possessory is often taxable especially regarding government property that an entity receives a possessory interest over.
[Last updated in July of 2021 by the Wex Definitions Team]