The Property Tax and Valuation Act, 2006 came into force on 17th November, 2006. Some of the provisions of the Act are highlighted below to assist you in familiarizing yourself with the Act.

Property is classified as agricultural, residential or other property. The Chief Valuation Officer may sub classify other property into commercial, cultural, historical, hotel, industrial, institutional and recreational. [See Sections 7(1) & (2)] If you are aggrieved by the classification or sub-classification of your property you may appeal to the Property Valuation Appeal Board for reclassification. [See Section 7(3)] Where a developer undertakes a programme of development that requires installation and maintenance of special services such as potable water, electricity, roads, sanitation and such other services, the property will be classified as a special development location. [See Section 8]

The previous Property Tax Act, 2000 provided a list of properties that were exempted from property tax. Under the 2006 Act property vested in a prescribed statutory non profit body, property owned by a prescribed charitable organization or institution, property used wholly in the packaging and processing of agricultural produce of a CARICOM country and plant and machinery used in a business are now added to the list of properties that are exempted from property tax. Environmental and ecological sites designated by Order of Cabinet have been removed from the list of properties exempted from property tax. [See
Section 14]

A dwelling house constructed after this Act came into force will be exempted from property tax for a period of two years. However it is important to note that property tax is payable on the land that the dwelling house is constructed. [See Section 15] A dwelling house deduction of $150,000.00 will be allowed when determining the taxable value of a dwelling house. [See Section 16] The Act provides for property tax rebates in the following instances:

1. A rebate of 5% where the property tax due and payable for a tax year is paid on or before the due date. [See Section 17(1)]
2. If the property tax is paid in installments no rebate will be given on the first installment but a 5% rebate of the total amount of the property tax payable will be given on the second installment if it is paid by the due date. [See Section 17(2)]
3. A local pensioner, upon written application to the Commissioner, will be allowed a rebate on the property tax payable on his or her dwelling house provided no part of the dwelling house is leased to another person. The pensioner’s total income will affect the total rebate allowed. A pensioner with a total income exceeding $75,000.00 will not be allowed a rebate on property tax. [See Section 18]
4. Where a part of a property is used in the interest of national development as agricultural land, upon providing the Commissioner with a certificate by the Director of Agriculture of the satisfactory use of the land, a 90% rebate will be allowed. Where a part of a property is used in the interest of national development as industrial property a 25% rebate will be allowed. Where a part of a property is used in the interest of national development as a hotel a 25% rebate will be allowed. Property situated in a special development location will be allowed a 25% rebate. You will note that the term “used in the interest of national development” is the common theme in relation to these rebates. The Act states that this term means that the property is used in a manner consistent with a national programme approved by government. [See Section 19]
5. Institutional, cultural, historical or recreational properties used mainly for local community purposes that are not used for residential or commercial purposes will be allowed a 100% rebate. [See Section 20]

Your property tax is due 90 days from the date of issue which is outlined on the demand note issued by the Commissioner. [See Section 27(1)] If you pay your property tax in installments, the first installment which cannot be less than 50% of the total tax due must be paid during the period of 60 days before the due date and the balance must be paid on or before the due date. [See Section 27(2)]

Failing to pay your property taxes may result in any one of the following:

1. Property tax will be a first charge on the property that tax is due and payable and this charge will be prior to all other liens and demands affecting the property. [See Section 28]
2. If property tax is not paid by the due date a penalty of 10% on the total tax due shall accrue and if the property tax and 10% penalty is not paid one calendar month after the due date then a penalty of 2% per month on the unpaid tax shall accrue. [See Section 29]
3. The Commissioner may pursue outstanding property taxes in a manner similar to a civil debt. [See Sections 30 & 31]
4. If property tax is not paid within 90 days of the due date the Commissioner has the power to issue a warrant of distress to levy by distress any goods or chattel building that is located on the property in which property tax is outstanding. [See Sections 32-37]

The Commissioner may exercise his power to sell the property in respect of which property tax is due and payable where the property tax has been in arrears and unpaid for more than 5 years after the due date. [See Sections 38-48] It is always worth examining the legislation being passed in Parliament as this is how you get to know your rights and the extent of the authority of the various government agencies within your society.