The Tribune

By NEIL HARTNELL Tribune Business Editor SOME 32 first-time Bahamian home buyers have collectively lost almost $81,000 because there is nothing in statute law to allow the refund of Stamp Duty mistakenly paid on their real estate purchases, it was revealed yesterday. The House of Assembly's Public Accounts Committee, in its interim report tabled yesterday, urged that this legislative deficiency be remedied as "soon as possible" and prior to the upcoming 2012 general election, describing the absence of a refund provision as "unfair". First-time home buyers are exempted from paying Stamp Duty if the value of their property purchases is $500,000 or less, but the Committee's report noted that Ehurd Cunningham, the Financial Secretary, had sent out a directive stating no refunds should be paid due to the absence of statutory provisions requiring the Treasury to do so. Referring to a November 22, 2011, meeting with Mary Mitchell and Miriam Curtis, senior deputy treasurer and deputy treasurer respectively, the Committee's report disclosed how the two officials disclosed "that there were no provisions in law to refund Stamp Duty paid by persons who were first time home purchasers". The report added: "Several persons had complained and representation had been made to the Financial Secretary. "The Financial Secretary placed in writing a directive that said that as there was no provision in the law to refund monies paid for Stamp Duty, the Treasury was not able to accommodate requests for refunds." One prominent realtor, spoken to by Tribune Business yesterday, described the situation as "strange", questioning how/why first-time purchasers of real estate worth less than $500,000 would have paid Stamp Duty in the first place, given the exemption's existence. Possible explanations could include lack of knowledge that the exemption was available, or a dispute as to whether the property's valuation fell below the $500,000 threshold. Describing the situation as "unfair", the Public Accounts Committee urged that the law be amended to provide for Stamp Duty refunds to first-time Bahamian home buyers. "Information provided by the Treasury indicated that there was some 32 persons who applied for refund of Stamp Duty paid but had not been able to receive the refund," the Committee's report said. "These persons were entitled a total of $80,926 in refunds. "Your Committee recommends that the legislation necessary to allow these persons to receive their refund be tabled in the House of Assembly as soon as possible, and before the end of this current session." The first-time home buyer Stamp Duty exemption was targeted primarily at middle and lower class Bahamian home buyers, and was designed to make their real estate purchases easier by lowering transaction costs. Apart from social benefits, it was also intended to stimulate both the real estate market and construction industries, key sectors in the Bahamian economy. The Committee's report also noted that Miss Mitchell, the senior deputy treasurer, expressed concern about the Treasury Department's staffing, given that its 300 personnel included accounting officers at all central government agencies and ministries. "She did not feel that the current level of staffing was adequate, as the department was continually losing staff through attrition and retirement," the report said. "The Treasury was conducting an assessment of staffing needs, particularly those of outside agencies, and the department was currently in need of six persons to supplement the in-house staff."