5
DEC 2016
The Return of Property Tax
Property Tax returns to Trinidad and Tobago in 2017 and the expected due date is targeted for March 31st 2017. The legislation will be
guided by the existing Property Tax Act 2009. This payment to local government authorities it must be reminded is to ensure the provision of public services that in theory go with enjoyment of your property and includes such public services as the collection of garbage, cleaner streets and related.
Of main interest to the general public is the flat rate of three percent which shall apply to residential property. The rate will be applied
based on real or potential rental value for the property and not market price. Such a value will need to factor some level of a reasonableness test based on location and property attributes. The other applicable rates for other type properties will be as follows. Agricultural 1%, Commercial 5% and Industrial exclusive of industrial estates at 6%. Waivers are intended to be directed to certain Faith
Based groups and schools and special provisions for exemptions will apply under the act to provide for homeowners who are unable to pay.
The line Minister has justified the rate determination by implying the old
rates were unconstitutional as different rates applied in different areas of
the country. At this point however it is still a little dubious on such aspects as who would be responsible and or engaged to ascertain rental value and who will be considered exempt based on distress circumstances.
In terms of follow-up transparency maybe an issue in terms of who is in
compliance regarding payments due.