Tyrone Reid, Staff Reporter
THE REVENUE Enhancement Division of the Ministry of Local Government is pleading with property owners to pay up their property tax.
Andre Wiltshire, financial analyst in the Revenue Enhancement Unit, lamented that the non-payment of the taxes was severely hampering the undertaking of property-related services such as collection and disposal of garbage, maintenance of parochial roads and payment for street lights, among others.
"People need to pay their property tax (so) that property-related services can be carried out," he stressed.
Ann-Marie Mittoo, director of communications at the Ministry of Local Government and Environ-ment, reiterated that the compliance level was very low. She told The Gleaner that a hundred per cent compliance would still not be enough to pay for all the services funded by the property taxes, so every dollar is needed.
"The property tax cannot do all that it is slated to do. Solid waste alone (could) eat up all of it and still be wanting more like a hungry man," emphasised Mrs. Mittoo.
She added that the low compliance rate had forced the Ministry to review the number of services that benefit from the property taxes. In recent times, the fire service has not been a beneficiary.
COMPLIANCE RATE
Mr. Wiltshire revealed that the latest compiled figures show that the compliance rate for the financial year 2004-2005 stood at a meagre 35 per cent. The 2003-2004 period was equally as daunting with a matching 35 per cent compliance rate.
However, the financial year 2002-2003 fared better with a compliance rate of 43 per cent. The figures for the financial year 2005-2006 have not yet been tabulated.
Mrs. Mittoo revealed that the Ministry would be embarking on a property tax campaign slated to commence in May. She said the public education drive would be geared towards increasing compliance.
Tax tid bits
Property taxes are due on April 1 of every year. Property owners are given a month's grace period to have their accounts settled.
If taxes are not paid by May 1, a penalty, which is 10 per cent of the tax, would be incurred.
Property taxes can be paid at any Inland Revenue Collectorate.
Property owners are encouraged to take their valuation number along with them when they visit the collectorate. The valuation number is the figure on the top left hand corner of your receipt and is also called the tax ID.
How much is paid depends on the value of the property. Properties with unimproved value of $300,000 or less pay a fixed or flat rate of $600.
For properties exceeding $300,000 in value: Firstly, $300,000 is deducted from the unimproved value of the property.
Next, you calculate .5 per cent of the remainder and add that figure to the flat rate of $600, which would be your property tax.
Here is how the property tax would be calculated for a property with an unimproved value of $900,000:
$900,000 - $300,000 = $600,000
.5% of $600,000 = $3,000
$3,000 + $600 = $3,600
Property tax = $3,600
Property owners can apply for a relief that would either reduce their property tax or waive the entire fees where applicable. Application for the respective property tax relief should be done at the respective local authorities/parish council. Investigation would be carried out to see if applicants qualify.
Source - Inland Revenue Dept., Ministry of Local Government and Environment.
