The Tribune

THE issue of property tax can often stir up frustration, both from those who pay it and too many who have not over the years.

A revaluation exercise has prompted more frustration – reported on extensively this week in Tribune Business.

Some of the bills jumped in value considerably, but Minister of Economic Affairs Michael Halkitis largely shrugged off that concern as people could appeal if they thought the reassessment was too much.

A bigger problem has emerged however – with the possibility that none of the reassessments might be valid at all.

The issue is that the assessments were carried out by an appraisal company based in the United States, Tyler Technologies, which was contracted by the Department of Inland Revenue to conduct the mapping exercise across New Providence.

Now some would rightly ask why Bahamian appraisers were not used, but this is not just an issue of using a foreign company instead of local – the foreign company may not have been legally allowed to carry out the appraisal at all.

Sections four and 13 of the Real Estate (Brokers and Salesmen) Act 1995 specify that only Bahamian citizens or permanent citizens with the right to work can be authorised to do appraisals.

Tyler Technologies confirmed in a 2019 press release that it was providing appraisal services – but by the letter of the 1995 law, it would not be allowed to do so. As the Bahamas Real Estate Association pointed out, it could not be licenced to carry out that work.

The association said: “At no time did Tyler submit to BREA application(s) to licence its appraisers under their contract with the government. BREA has not granted any appraiser licences to Tyler or its personnel.”

Mr Halkitis seemed surprised that such concerns might “encourage people to ignore their obligations” to pay taxes given the government’s financial position – but the government’s need for money isn’t the individual taxpayer’s fault.

It seems likely that there will be a legal challenge – because if Tyler was not legally allowed to conduct the appraisals, they might well be ruled null and void, leaving the decisions based on them to be made again from new information. That will play out however it plays out.

However, there is a bigger picture. Reappraising land and properties across the country is a project that involves a lot of work, but it is relatively straightforward. If we get this wrong, it sends out a worrying signal for bigger changes that lie ahead.

Globally, there has been a push for a corporation tax – which we have signed up for – at a minimum rate of 15 percent. That will be a much bigger hurdle to deal with.

If Tyler was indeed unable to carry out the work, that should have been clear from the start given it is written in law. When it comes to laws such as corporation tax, we’ll be dealing with the companies that make our economy flow, including the biggest employers in our nation. Get that wrong, and you will be sure that will end up in court too.

The government needs money, for both the deficit and the debt, and it will get it one way or another, we can be sure of that. But it has to be done by the book, diligently and in a way that meets the law – or else it will be dragged out in legal challenges while the debt just gets bigger.

It will be interesting indeed to see the outcome from this debate – and where it might lead us in future.

Baseball stadium

Will it all be over by Christmas?

The Andre Rodgers Baseball Stadium construction began way back in September 2016, and was due to be complete in November 2017. Now we hear it might be complete by the end of this year.

Originally, the budget was $24.9m. Already, $27m has been “certified for payment” and now more money will apparently be needed.

Overbudget and overdue already. Will it make its new deadline in time to host the International Series Baseball Tournament in December? We’ll believe it when we hear the first bat hit the first ball.