The Tribune

EFFECTIVE immediately, the Real Property Tax Amnesty Programme could save taxpaying home owners up to 50 per cent of what they owe the government if they act fast and make arrangements with the assessment team at the Charlotte Street offices.

Roger Forbes, the Chief Valuation Officer and Controller of Inland Revenue at the Ministry of Finance, explained the three options of financial benefits for taxpayers that want to meet the June 30, 2013 deadline.

He said taxpayers would then have up to December 2013 to finalise a zero balance on their property tax accounts.

“The Government has instituted an amnesty programme under the Real Property Tax Act and it allows persons to benefit tremendously from several options under this programme,” said Mr Forbes.

He said persons who have properties that are assessed with arrears of not more than three years, are able to get relief on the assessed amount, plus the surcharge interest of 50 per cent.

“That’s 50 per cent of the tax amount and 50 per cent of the surcharge. That’s a tremendous relief. That’s for arrears of not more than three years, and of course, those taxes must be paid in full by June 30, 2013,” said Mr Forbes.

“The second option is for properties that are on the assessed list and with arrears going back for more than three years. These persons are entitled to a waiver of 100 percent of the total surcharge,” said the Chief Evaluation Officer.

He said to benefit, however, the payment must be made in full by December 31, 2013.

Then there is a third option, under which those with properties that are not on the assessment list, are encouraged to get their property on the list.

“The Government will waive the taxes for the prior years, providing again that the property is on the register with our department, that is the Valuation Department, on or before the 30th of June, 2013,” he said.

Mr Forbes said he believes about 20 per cent of properties remain to be put on the list.

He spoke about the other option the government is talking about in terms of the amnesty, which is the rebate of five per cent, or a five per cent waiver for those who are up to date.

He said if they remain current for the next three years, those tax payers can benefit from the programme.

“Now, in addition to that, the government has undertaken that it would be prepared to look at those accounts that may have large variations in the amount assessed on the tax, in recent times, to give those careful consideration,” said Mr Forbes.

He explained that property value should be based on market value, but there are some properties that are not currently evaluated in these terms.

He said it would be useful for property owners to have an appraisal is done to ensure their property is valued correctly.

Bahamians do not pay tax on vacant properties, but non-Bahamians do, Mr Forbes noted.

“Now for commercial property, Bahamians, as well as non-Bahamians, are required to pay taxes.

And that is one per cent on the first $500,000. Over half a million dollars, the rate goes up to two per cent,” he said.

“Now you talk about the structure – whether a Bahamian has a property and that property has some form of improvement or development, the first for owner occupied property, that is the person owns the property and is occupying the property, whether its Bahamian or foreigners, the first $250,000 is exempted. This is residential property.

“Now over $250,000, but it does not exceed $500,000, there is a rate of three-quarters of one per cent. That’s the tax rate. If the property is valued over $500,000 then the rate that is applied to such property is one per cent and that is applied up to a maximum of $50,000.”

Mr Forbes said Bahamians will know how much they are required to pay when they receive their tax bill, which, if they are exempt, will not show a taxable amount.

He said if anyone has questions, they are free to call or visit his office.

“We recommend that all properties are registered because you may be exempt today but with improvements done to the property, it may fall within another category tomorrow,” said Mr Forbes.

He also stressed the importance of business licenses and keeping real property tax up to date.

Mr Forbes said that according to the law, when renewing their business licenses, property owners must ensure their real property tax is up to date.

“We need the public to be aware of this because some persons are not aware that this section of the law exists. And so this is very important for them to, while they are renewing their business licenses, to make sure that they also bring their tax account up to date,” said Mr Forbes.

“And then another area that should be underscored and that is the government of the Bahamas has first charge on all property.

“So if persons have their property and they do not pay their taxes, even if they have mortgage on that property, the government has first charge to collect its money.

“So it’s very important for persons to remain current because, if they don’t remain current, the time will come when they may wish to sell the property and before they could sell the property, the government must get its share.”

Mr Forbes warned that if taxpayers delay for too long, a five per cent surcharge will be added on their account every year.

“It’s to their advantage to come now, pay the account and keep it current moving forward. They don’t have to deal with the interest,” said Mr Forbes.

He added: “If a person dies the property remains and the tax on that property remains. So those who may inherit that estate, they will also inherit the tax bill.

“So it is important, as I indicated earlier, to keep the tax account current for the benefit of the persons who are alive now and their successors upon their death, because, bear in mind, the tax will not go away, unless the government is giving some relief.