Basseterre, St. Kitts (February 01, 2007): The new property tax law which will be enforced this year, will ensure that the values used in the calculation of the new tax rate will be lower than the existing one.
~~adz:Left~~This is according to Comptroller of the Inland Revenue Department (IRD) Mrs. Beverly Williams who compared the old procedure to the new.
"The old law calculated the tax based on the rental value of your property multiplied by a five percent tax rate," she said. "The new law will calculated the tax based on the market value of your property meaning the value that your property can attract if it was sold. I am pleased to say that the new rate will be far less than one percent."
The IRD Comptroller explained that the new law provides for an automatic exemption which will provide relief for all property owners. It may result in individuals being exempt from property tax if they posses homes of lower values. The exact amount of the exemption will be disclosed at a later date. However, the land tax will still be payable by all land owners.
Mrs. Williams further noted that this attitude of fairness and understanding runs throughout the framework of the new act.~~adz:Right~~
"In August of 2006, the Government in Parliament replaced the Land and House Tax Act of 1913 with the Property Tax Act of 2006," she explained. "The main difference between the two as far as it related to property tax is the way in which property is valued. It is also aimed to effectively and more fairly assess all property owners. In the past, many property owners were not paying their fair share especially in the more affluent areas of the island."
Like the previous legislation, the new act allows for payment arrangements to be made in cases where it is not possible to pay the amount in full.
The Property Tax Act of 2006 allows for the survey of all the properties in St. Kitts. This will assist IRD in the computerization of the property valuation and taxation and in the development of a cadastral survey which is a map grid that will identify each parcel of land on the island. This is the trend being undertaken by the OECS islands.
In line with the fairness and understanding of the new act, the IRD will be undertaking a series of public awareness activities including advertisements, newspaper articles, radio programmes and town hall meetings. ~~adz:Right~~
The IRD will explain key issues of the Property Tax Act of 2006 including the valuation method, the certified property list and the proposed time frame for the various activities. The first town hall meeting takes place Wednesday, February 07 at 7:00 p.m. at the Newtown Community Centre. This first meeting is targeted at the residents of Frigate Bay, Bird Rock, Pond's Extension, New Pond Site and Newtown. A schedule of upcoming meetings will be released soon.
For additional information please contact IRD Comptroller Mrs. Beverley Williams at 467-1083 or Supervisor of Property Valuation Mrs. Joanna Collins at 467-1082.
