PROPERTY TAX BILLS IN MARCHBy SEAN DOUGLAS Friday, December 4 2009
WATER bill, current bill, phone bill, cable TV bill...and now property tax bill.
Households across the country will get another type of bill in their mailbox next March — property tax — Finance Minister Karen Nunez-Tesheira revealed during the post-Cabinet news briefing yesterday at the Diplomatic Centre, St Ann’s.
She said in January an automated system will be fully implemented which people could use in March to pay their property tax bills at outlets of TTPost and banks, or even online.
Saying the tax hikes must be done by first amending the Valuation Act by just a simple majority in Parliament, she said, “We fully expect it will be brought before the end of this parliamentary term (and) that we would be able to implement it as the new property tax as of January 1. March 31 is the date for the new assessment of your taxes.”
Nunez-Tesheira said March 31st is the billable date and a firm called Manatron has been hired to automate the system.
“You will be able to do what you can’t do now — you’ll be able to pay your taxes at a location far more closer to home. From January you’ll be able to pay any arrears you have in any revenue office regardless of where your land is located.”
Nunez-Tesheira said a householder would be able to go onto the computerised system to compare his tax rate to those of other people.
At present, the collection of property taxes relies on property owners visiting their local District Revenue Office or Warden’s Office, but this system is now set to be changed to a stricter collection method.
Nunez-Tesheria said the average residential property has a rental value of $3,000 per month and would thereby incur a property tax of $81 per month.
She said her ministry has sent out 226,000 brochures to explain the tax changes. Nunez-Tesheira effused that the property tax system would for the first time ever allow a deferral of payments, unlike the current law which only recognises “an act of God”. She said the property tax “reform” would replace the current Municipal Corporation Act which regulates the municipalities of Port-of-Spain, Arima, Chaguanas, San Fernando and Point Fortin, and the Land and Building Taxes Act which applies to property in the rest of the country.
Regarding the municipalities, she said, “Their tax structure is between two percent — the lower end is Point Fortin — and ten percent (in) Port-of-Spain.”
She said residential rates in San Fernando and Arima are eight percent at present. Elsewhere in the rest of the country the rate is 7.5 percent. “Now we’ll all pay three percent,” she added. She said land alone is taxed at $10 per acre regardless of location.
In response to Nunez-Tesheira’s statements yesterday, Congress of the People (COP) deputy leader Prakash Ramadhar vowed to keep up the party’s campaign against the property tax hikes.
Ramadhar said, “We will continue to resist the arrogance and insensitivity of this Government, especially the property tax.”
He lamented that Nunez-Tesheira’s announcement had come in spite of the COP yesterday writing her to request a meeting on the property tax for which the party has collection a petition of signatures.
“We will continue to work the ground,” vowed Ramadhar. “A team of our lawyers are working on a legal challenge to the property tax.”
He vowed that Nunez-Tesheira has not won a fait accompli (that is, a done deal) in imposing the tax-hike. He said, “We intend to use all lawful means to prevent this happening.”
He urged citizens to attend the COP’s “Axe the Tax” meeting tomorrow at 9 am at Harris Promenade, San Fernando.
Yesterday upon news of the tax hike, some citizens could not help but recall the words of Montserratian calypsonian, Arrow, in his hit song in the 1970s, singing, “Bills, Bills to pay.”
Nunez-Tesheira also announced yesterday that her ministry’s new body, the Revenue Authority, would be in place by the middle of next year.
Asked about the TT International Financial Centre (TTIFC) she claimed many foreign companies are keen to set up shop but are just awaiting Cabinet’s nod.
She claimed one of the businesses being considered for the TTIFC is that of international trading in carbon credits which countries and industrial firms are allocated quotas of to limit their emissions of the greenhouse gas, carbon dioxide.
