PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago government has introduced new legislation to reduce the residential property tax rate by as much as 33 percent.
Finance Minister Colm Imbert said the Property Tax (Amendment) Bill, 2024, will be debated on Monday.
Imbert told legislators on Friday that the new legislation is intended to reduce the rate of residential property tax from three to two percent, “which represents an effective reduction of property tax by 33 percent.
“This is intended to reduce the impact of the new valuations since it is clear that some property owners believe that the old 1948 valuations should still be used in the modern era, in 2024, and it is important to adjust and correct that erroneous belief gradually”.
He said it would also extend the time until June 30, 2024, for the Board of Inland Revenue to issue Notices of Assessment.
“This would permit more time for the Valuation Division to review valuations under query, adjust where necessary, and advise the Board of Inland Revenue(BIR) of any tax assessments that must be updated.”
In addition, the new legislation will allow for extending all applicable periods by Order, as is the case under the Valuation of Land Act.
Imbert said this would ensure that the government can extend any further time limits under the Property Tax Act if required, inclusive but not limited to the date upon which Property Tax is to be paid and the date upon which penalties are incurred.
Imbert said he also wanted to advise that Regulations to give effect to the deferral form required under section 23 of the Property Tax Act were made on Thursday and will be published on Friday.
“This will allow indigent, elderly, and infirm persons who satisfy the criteria under section 23 of the Property Tax Act to apply to the Board of Inland Revenue for the deferral of Property Tax.”
The Finance Minister said further that an Order will soon be published extending the period for persons to bring objections to valuation notices from 30 days to six months.
“Importantly, this period only commences after the notice of valuation is served on the residential land owner or occupier. The government’s intention here is clear: it intends to be transparent about the valuations sent to residential land owners and occupiers by the Commissioner of Valuations.
It will give owners and occupiers additional time to lodge objections, which must be determined and answered by the Commissioner of Valuations in the first instance before being adjudicated upon by other authorities if there is still a dispute”.
Imbert said that the government expects these measures to go a long way in addressing the teething issues currently being faced. “We also undertake to take all necessary and future legislative and operational measures needed to ensure that Property Tax is implemented equitably across Trinidad and Tobago.”
However, he expressed his disappointment at notices posted on the doors of some Regional Revenue Collection Offices on Thursday stating that property tax payments had been suspended until further notice.
“These notices were not authorized and should not have been put up, especially because the Property Tax Amendment Act 2024 is not yet law,” he said.
Imbert told Parliament that his investigations have revealed that some of the BIR staff, after becoming aware of the provisions in the amendment bill, “took it upon themselves to do this, with apparently good intentions, but without authorization, and my knowledge or consent.
“However, this is different from how a Cabinet decision should be communicated to the public, especially on a matter as sensitive as this.
“I am disappointed that this procedural lapse occurred, and I hope and expect that the public servants involved will learn from this mistake. On behalf of the government, I wish to express my deep regret to all inconvenienced,” Imbert said.
He told legislators that now that the Bill is before the Parliament, he has requested the Permanent Secretary in the Ministry of Finance to request the BIR cease collecting property tax until the new rate of residential property tax is in effect.
“Additionally, I have been advised by the BIR that up to Wednesday, March 15, 2024, 801 property tax payments had been made for TT$1,030,864.55 (One TT dollar = US$0.16 cents), an average of TT$1,297 in annual property tax. All of these taxpayers will be issued new tax notices at the new rate of two percent and refunded, and I have asked the BIR to do so promptly,” Imbert said.
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