SIGNIFICANT INCREASES in property taxes based on a new system of evaluation are being predicted by Opposition spokesman on finance, Audley Shaw.
Mr. Shaw, speaking in the Budget Debate on Tuesday, suggested that this was another act of deception by the government in trying to produce a no-tax budget.
Currently, property tax is levied on the unimproved value of the land. A new unimproved market value system of evaluation will significantly increase both the value of the property and the level of taxation, he said.
He predicts that it will have a particularly devastating impact on the agricultural sector, which is already experiencing a major crisis.
"What is happening is that valuers are going into areas, looking at a piece of land, then estimating how many lots can be gotten out of that piece of land if it were sub-divided. If the land has potential for residential sub-division, it is valued according to the price that each lot would fetch," he said.
Mr. Shaw said that the valuers were also picking up data from recent sales, which have passed through the Stamp Office and Titles Office. These data gathered about lots in a particular area, help them to form the market value.
It is from these data that the property tax will be assessed and it should not to be confused with the Transfer Tax now charged on the sale of a piece of real estate, he told the House.
"Of course, the Minister and the Government will deny these efforts. But the Land Valuation Department is clearly preparing for this eventuality. I warn the Minister and the Government that the Opposition will be watching these developments very closely and will not allow this Government to introduce any taxes through the back door, as is the clear intent after the election," he said.
